Project Management Manual (PMM)

PROJECT MANAGEMENT MANUAL (PMM)
This document was created in English.
Document Number : 00_PT03_MN_002.02

Issue Date: 12/01/2022
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Table of Contents
I. Purpose ............................................................................................................................................................14
i. Glossary ...................................................................................................................................................14
ii. Ownership ................................................................................................................................................14
iii. Application.........................................................................................................................................14
iv. Maintenance of This Document .........................................................................................................14
v.Document Roles and Responsibilities / Authority Matrix ..........................................................................14
II. Structure of the Manual .....................................................................................................................................15
1 Introduction .......................................................................................................................................................18
1.1 Project Management Manual (PMM) .................................................................................................18
1.2 PMM Sections ...................................................................................................................................18
1.3 How to read PMM .............................................................................................................................21
1.4 Supporting Documents ......................................................................................................................23
2 Glossary ............................................................................................................................................................26
2.1 Glossary Table ..................................................................................................................................26
3 Project Lifecycle and Stage Gate Process ........................................................................................................84
3.1 Project Lifecycle ................................................................................................................................84
3.2 Stage Gate Review Process .............................................................................................................92
3.3 Key Performance Indicators (KPIs) ...................................................................................................96
3.4 Attachments ......................................................................................................................................97
4 Five-Year Projects Portfolio Planning .............................................................................................................100
4.1 PMM-004-FYP-010 Initiate Projects Portfolio at Cluster Level ........................................................102
4.2 PMM-004-FYP-020 Develop and Confirm Initial Cluster Projects Portfolios ...................................107
4.3 PMM-004-FYP-030 Screen NWC Initial Projects Portfolio ..............................................................122
4.4 PMM-004-FYP-040 Develop Draft FYPPP and Submit for Review .................................................131
4.5 PMM-004-FYP-050 Update FYPPP and Prepare Annual Capital Works Plan ................................134
4.6 PMM-004-FYP-060 Develop Final FYPPP and Annual Capital Works Plan and Submit to MOF for
Budget Approval ..............................................................................................................................136
4.7 PMM-004-FYP-070 Five-Year Projects Portfolio Variation Control .................................................140
4.8 Key Performance Indicators (KPIs) .................................................................................................148
4.9 Attachments ....................................................................................................................................148
5 Project Team Management .............................................................................................................................152
5.1 Project Management Team Roles ...................................................................................................152
5.2 Responsibility Assignment Matrix (RAM) ........................................................................................155
5.4 Attachments ....................................................................................................................................156
6 Project Governance Management ..................................................................................................................160
6.1 PMM-006-GOV-010 Enterprise Environmental Factors and Organizational Process Assets ..........160
6.2 PMM-006-GOV-030 Project Initiator and Sponsor ..........................................................................164
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6.3 PMM-006-GOV-040 End User ........................................................................................................166

6.4 PMM-006-GOV-050 PMM Update and Continual Improvement ......................................................169
6.5 PMM-006-GOV-060 Control of Project Management Documents ...................................................175
6.6 PMM-006-GOV-070 Control Responsibilities and Authorities .........................................................179
6.7 PMM-006-GOV-080 Management Representative .........................................................................183
6.8 PMM-006-GOV-100 Management Review ......................................................................................184
6.9 PMM-006-GOV-110 Human Resources Centralization ...................................................................186
6.10 PMM-006-GOV-120 Infrastructure ..................................................................................................188
6.11 PMM-006-GOV-130 Work Environment ..........................................................................................190
6.12 PMM-006-GOV-140 PMM User Feedback ......................................................................................191
6.13 PMM-006-GOV-160 PMM Internal Audit .........................................................................................193
6.14 PMM-006-GOV-170 Monitoring Application of PMM Processes .....................................................196
6.15 PMM-006-GOV-180 Stage Gate Review.........................................................................................199
6.16 PMM-006-GOV-190 Project Management Data Analysis................................................................203
6.18 Attachments ....................................................................................................................................208
7 Project Integration Management .....................................................................................................................214
7.1 PMM-007-INT-010 Develop the Project Charter .............................................................................216
7.2 PMM-007-INT-015 Plan Integration Management ...........................................................................217
7.3 PMM-007-INT-020 Develop the Project Management Plan ............................................................222
7.4 PMM-007-INT-023 Site Handover to Contractor and Consultant Work Commencement ................230
7.5 PMM-007-INT-026 Conduct Project Kick Off Meeting .....................................................................239
7.6 PMM-007-INT-030 Direct and Manage Project Execution...............................................................240
7.7 PMM-007-INT-040 Manage Project Knowledge ..............................................................................244
7.8 PMM-007-INT-050 Monitor and Control Project Work .....................................................................247
7.9 PMM-007-INT-060 Variation Control ...............................................................................................248
7.10 PMM-007-INT-070 Close the Project ..............................................................................................259
7.12 Attachments ....................................................................................................................................265
8 Project Scope Management ............................................................................................................................270
8.1 PMM-008-SCO-010 Plan Project Scope Management ...................................................................272
8.2 PMM-008-SCO-030 Define Project Scope ......................................................................................277
8.3 PMM-008-SCO-040 Create the Work Breakdown Structure (WBS) ................................................293
8.4 PMM-008-SCO-050 Control Scope .................................................................................................294
8.5 PMM-008-SCO-055 Testing & Commissioning ...............................................................................298
8.6 PMM-008-SCO-060 Total Initial Acceptance and Handover of Project Scope ................................311
8.7 PMM-008-SCO-065 Partial Initial Acceptance and Handover of Project Scope ..............................327
8.8 PMM-008-SCO-070 Final Acceptance of Project Scope .................................................................340
8.10 Attachments ....................................................................................................................................350
9 Project Value Engineering...............................................................................................................................356
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9.1 What is Value? ................................................................................................................................356

9.2 What is Value Engineering? ............................................................................................................356
9.3 This Section is a Guide to: ..............................................................................................................357
9.4 Value Engineering Application Opportunities ..................................................................................357
9.5 Value Engineering Study Team .......................................................................................................358
9.6 Value Engineering Study Process ...................................................................................................358
9.7 PMM-009-VEN-010 Plan and Prepare for Value Engineering Study ...............................................365
9.8 PMM-009-VEN-020 Conduct Value Engineering Study ..................................................................369
9.9 PMM-009-VEN-030 Implement Value Engineering Study Approved Recommendations ................374
9.10 PMM-009-VEN-040 Monitor and Control Value Improvement .........................................................375
9.12 Attachments ....................................................................................................................................378
10 Project Schedule Management .......................................................................................................................383
10.1 PMM-010-SCH-010 Plan Project Schedule Management ...............................................................385
10.2 PMM-010-SCH-015 Schedule Management for Initial Planning ......................................................389
10.3 PMM-010-SCH-020 Schedule Management for Procurement ........................................................391
10.4 PMM-010-SCH-030 Schedule Management for Design ..................................................................397
10.5 PMM-010-SCH-040 Schedule Management for Construction, Testing & Commissioning and
Handover.........................................................................................................................................402
10.7 Attachments ....................................................................................................................................412
11 Project Cost Management...............................................................................................................................417
11.1 PMM-011-COS-020 Plan Project Cost Management ......................................................................420
11.2 PMM-011-COS-030 Cost Management During Initial Planning Stage ............................................424
11.3 PMM-011-COS-035 Cost Management During the Tender for Design Stage .................................427
11.4 PMM-011-COS-040 Cost Management During the Design Stage ..................................................428
11.5 PMM-011-COS-050 Cost Management During the Tender for Construction Stage ........................437
11.6 PMM-011-COS-060 Control Cost during Construction, Testing & Commissioning and Handover &
Closeout Stages ..............................................................................................................................439
11.7 PMM-011-COS-070 Payments during Construction, Testing & Commissioning and Handover &
Closeout Stages ..............................................................................................................................445
11.8 PMM-011-COS-080 Monitor and Control Budget and Cashflow .....................................................453
11.10 Attachments ....................................................................................................................................458
12 Project Quality Management ...........................................................................................................................461
12.1 PMM-012-QUA-010 Plan Project Quality Management ..................................................................461
12.2 PMM-012-QUA-020 Perform Quality Assurance .............................................................................467
12.3 PMM-012-QUA-030 Perform Quality Control ..................................................................................475
12.5 Attachments ....................................................................................................................................486
13 Project Human Resource Management ..........................................................................................................493
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13.1 PMM-013-HUM-010 Plan Project Human Resource Management .................................................494

13.2 PMM-013-HUM-020 Acquire NWC Project Team ...........................................................................498
13.3 PMM-013-HUM-030 Develop NWC Projects Team ........................................................................502
13.4 PMM-013-HUM-035 Interview and Approve Second Party Project Team Members .......................504
13.5 PMM-013-HUM-040 Manage the Project Team ..............................................................................507
13.6 PMM-013-HUM-050 Close the Project Team ..................................................................................507
13.8 Attachments ....................................................................................................................................510
14 Project Communication Management .............................................................................................................514
14.1 PMM-014-COM-010 Plan Project Communications Management ..................................................515
14.2 PMM-014-COM-020 Distribute Confidential Correspondence from Consultant/Contractor to NWC
520
14.3 PMM-014-COM-030 Distribute Confidential Correspondence from NWC to Consultant/Contractor
524
14.4 PMM-014-COM-040 Distribute Non-Confidential Correspondence from Consultant to NWC .........527
14.5 PMM-014-COM-050 Distribute Non-Confidential Correspondence from Contractor to NWC ..........530
14.6 PMM-014-COM-060 Distribute Non-Confidential Correspondence from NWC to Consultant .........533
14.7 PMM-014-COM-070 Distribute Non-Confidential Correspondence from NWC to Contractor ..........536
14.8 PMM-014-COM-080 Distribute Non-Confidential Correspondence from Supervision Consultant to
Contractor .......................................................................................................................................539
14.9 PMM-014-COM-090 Distribute Submittals for Approval ..................................................................542
14.10 PMM-014-COM-100 Distribute Non-Conformance Report (NCR) ...................................................546
14.11 PMM-014-COM-110 Distribute Request for Information (RFI) ........................................................552
14.12 PMM-014-COM-115 Cascade Objectives .......................................................................................556
14.13 PMM-014-COM-120 Design Performance Reporting ......................................................................558
14.14 PMM-014-COM-130 Construction Performance Reporting .............................................................562
14.15 PMM-014-COM-140 Manage Stakeholders ....................................................................................568
14.17 Attachments ....................................................................................................................................570
15 Project Risk Management ...............................................................................................................................576
15.1 PMM-015-RIS-010 Risk Management at Portfolio Level .................................................................577
15.2 PMM-015-RIS-020 Plan Project Risk Management ........................................................................581
15.3 PMM-015-RIS-030 Identify Risks at Project Level ..........................................................................587
15.4 PMM-015-RIS-040 Qualitative Risk Analysis at Project Level .........................................................595
15.5 PMM-015-RIS-050 Quantitative Risk Analysis at Project Level ......................................................597
15.6 PMM-015-RIS-060 Plan Risk Responses at Project Level ..............................................................598
15.7 PMM-015-RIS-070 Implement Risk Responses at Project Level ....................................................602
15.8 PMM-015-RIS-080 Monitor Risk Responses at Project Level .........................................................604
15.10 Attachments ....................................................................................................................................608
16 Project Procurement Management .................................................................................................................613
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16.1 PMM-016-PRO-010 Plan Purchases and Acquisitions at Portfolio Level ........................................615

16.2 PMM-016-PRO-020 Plan Project Procurement Management .........................................................619
16.3 PMM-016-PRO-025 Acquire Project Land ......................................................................................626
16.4 PMM-016-PRO-030 Prepare Tender Documents ...........................................................................627
16.5 PMM-016-PRO-040 Select a Bidder ...............................................................................................634
16.6 PMM-016-PRO-070 Contract Administration ..................................................................................641
16.7 PMM-016-PRO-080 Suspend and Resume Project ........................................................................646
16.8 PMM-016-PRO-085 Change Project Status from Partial Suspension to Total Suspension ............652
16.9 PMM-016-PRO-090 Withdraw Project.............................................................................................656
16.10 PMM-016-PRO-100 Contract Closure .............................................................................................669
16.12 Attachments ....................................................................................................................................674
17 Project Health, Safety and Environmental Management .................................................................................679
17.1 PMM-017-HSE-010 Plan Project HSE Management.......................................................................679
17.2 PMM-017-HSE-015 Environmental Impact Assessment .................................................................685
17.3 PMM-017-HSE-020 Perform Health, Safety & Environmental Assurance .......................................687
17.4 PMM-017-HSE-030 Perform Health, Safety & Environmental Control ............................................698
17.6 Attachments ....................................................................................................................................709
18 Project Financial Management ........................................................................................................................715
18.1 PMM-018-FIN-005 Plan Project Financial Management .................................................................715
18.2 PMM-018-FIN-015 Develop Project Cash Flow ..............................................................................720
18.3 PMM-018-FIN-020 Perform Financial Control .................................................................................722
18.5 Attachments ....................................................................................................................................726
19 Project Claim Management .............................................................................................................................729
19.1 PMM-019-CLA-005 Plan Project Claim Management .....................................................................731
19.2 PMM-019-CLA-010 Identify Potential Claims by Reviewing Contract Documents ..........................736
19.3 PMM-019-CLA-020 Avoid Claims ...................................................................................................737
19.4 PMM-019-CLA-030 Assess and Quantify Claim .............................................................................741
19.6 Attachments ....................................................................................................................................749
References: ..........................................................................................................................................................751
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Table of Figures
Figure 1-1 Example Flowchart ............................................................................................................................... 22
Figure 3-1 “Design-Bid-Build” Project Lifecycle ..................................................................................................... 85
Figure 3-2 “Design & Build” Project Lifecycle ........................................................................................................ 86
Figure 3-3 The Stage Gate Process Flowchart ...................................................................................................... 94
Figure 3-4 Simplified Stage Gate Process Flowchart ............................................................................................ 95
Figure 3-5 Gate Committee ................................................................................................................................... 96
Figure 4-1 Road Map for Five-Year Projects Portfolio Planning .......................................................................... 101
Figure 4-2 High-Level Process Map for Project Integration Management ........................................................... 102
Figure 4-3 PMM-004-FYP-010 Initiate Projects Portfolio s at Cluster Level Flowchart ........................................ 103
Figure 4-4 PMM-004-FYP-020 Develop and Confirm Initial Cluster Projects Portfolios Flowchart ...................... 108
Figure 4-5 PMM-004-FYP-030 Screen NWC Initial Projects Portfolio Flowchart ................................................. 123
Figure 4-6 PMM-004-FYP-040 Prepare Draft FYPPP and Submit for Review Flowchart .................................... 132
Figure 4-7 PMM-004-FYP-050 Update FYPPP and Prepare Annual Capital Works Plan Flowchart ................... 134
Figure 4-8 PMM-004-FYP-060 Prepare Final FYPPP and Annual Capital Works Plan and Submit to MOF for Budget
Approval Flowchart .............................................................................................................................................. 137
Figure 4-9 PMM-004-FYP-070 Five-Year Projects Portfolio Variation Control Flowchart .................................... 141
Figure 6-1 PMM-006-GOV-010 Enterprise Environmental Factors and Organizational Process Assets Flowchart
............................................................................................................................................................................ 162
Figure 6-2 PMM-006-GOV-030 Project Initiator and Sponsor Flowchart ............................................................. 165
Figure 6-3 PMM-006-GOV-040 End User Flowchart ........................................................................................... 167
Figure 6-4 The Recurring Cycle of Continual Improvement ................................................................................. 171
Figure 6-5 PMM-006-GOV-050 PMM Update and Continual Improvement Flowchart ........................................ 172
Figure 6-6 PMM-006-GOV-060 Control of Project Management Documents Flowchart...................................... 176
Figure 6-7 PMM-006-GOV-070 Control Responsibilities and Authorities Flowchart ............................................ 180
Figure 6-8 PMM-006-GOV-080 Management Representative Flowchart ............................................................ 183
Figure 6-9 PMM-006-GOV-100 Management Review Flowchart ........................................................................ 185
Figure 6-10 PMM-006-GOV-110 Human Resources Centralization Flowchart .................................................... 186
Figure 6-11 PMM-006-GOV-120 Infrastructure Flowchart ................................................................................... 189
Figure 6-12 PMM-006-GOV-130 Work Environment Flowchart ........................................................................... 190
Figure 6-13 PMM-006-GOV-140 PMM user feedback Flowchart ........................................................................ 192
Figure 6-14 PMM-006-GOV-160 Internal Audit Flowchart ................................................................................... 194
Figure 6-15 PMM-006-GOV-170 Monitoring & Measurement of PMM Processes Flowchart .............................. 197
Figure 6-16 PMM-006-GOV-180 Stage Gate Review Flowchart ......................................................................... 200
Figure 6-17 PMM-006-GOV-190 Project Management Data Analysis Flowchart ................................................ 204
Figure 7-1 High-Level Process Map for Project Integration Management ........................................................... 215
Figure 7-2 PMM-007-INT-010 Develop the Project Charter Flowchart ................................................................ 216
Figure 7-3 PMM-007-INT-015 Plan Project Integration Management Flowchart ................................................. 218
Figure 7-4 PMM-007-INT-020 Develop the Project Management Plan Flowchart ............................................... 223
Figure 7-5 PMM-007-INT-023 Site Handover to Contractor and Consultant Work Commencement Flowchart .. 231
Figure 7-6 PMM-007-INT-026 Conduct Project Kick Off Meeting Flowchart ........................................................ 239
Figure 7-7 Directing the Project in Design-Bid-Build Projects .............................................................................. 241
Figure 7-8 Directing the Project in Design & Build Projects ................................................................................. 241
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Figure 7-9 Managing the Design ......................................................................................................................... 242

Figure 7-10 Managing the Construction in Design-Bid-Build Projects ................................................................. 243
Figure 7-11 Managing the Construction in Design & Build Projects .................................................................... 243
Figure 7-12 PMM-007-INT-040 Manage Project Knowledge Flowchart .............................................................. 244
Figure 7-13 Monitoring and Controlling the Design in Design-Bid-Build Projects ................................................ 247
Figure 7-14 Monitoring and Controlling the Construction in Design & Build Projects .......................................... 247
Figure 7-15 Monitoring and Controlling the Design and Construction in Design & Build Projects ....................... 248
Figure 7-16 PMM-007-INT-060 Variation Control Flowchart ................................................................................ 250
Figure 7-17 PMM-007-INT-070 Close the Project Flowchart ............................................................................... 260
Figure 8-1 High-Level Process Map for Project Scope Management .................................................................. 271
Figure 8-2 Scope Life Map .................................................................................................................................. 273
Figure 8-3 PMM-008-SCO-010 Plan Project Scope Management Flowchart ...................................................... 274
Figure 8-4 PMM-008-SCO-030 Define Project Scope Flowchart ......................................................................... 279
Figure 8-5 PMM-008-SCO-040 Create the Work Breakdown Structure (WBS) Flowchart .................................. 293
Figure 8-6 PMM-008-SCO-050 Control Scope Flowchart.................................................................................... 295
Figure 8-7 PMM-008-SCO-055 Testing & Commissioning Flowchart .................................................................. 299
Figure 8-8 PMM-008-SCO-060 Initial Acceptance and Handover of Project Scope Flowchart ............................ 315
Figure 8-9 PMM-008-SCO-065 Initial Acceptance and Handover of Project Scope Flowchart ............................ 330
Figure 8-10 PMM-008-SCO-070 Final Acceptance of Project Scope Flowchart .................................................. 342
Figure 9-1 Value Engineering Effect on Cost vs Time and Saving vs Time ......................................................... 357
Figure 9-2 Value Engineering Study Process ...................................................................................................... 359
Figure 9-3 High-Level Process Map for Project Value Engineering ..................................................................... 365
Figure 9-4 PMM-009-VEN-010 Plan and Prepare for Value Engineering Study Flowchart ................................. 365
Figure 9-5 PMM-009-VEN-020 Conduct Value Engineering Study Flowchart ..................................................... 370
Figure 9-6 PMM-009-VEN-030 Implement Value Engineering Study Approved Recommendation Flowchart .... 374
Figure 9-7 PMM-009-VEN-040 Monitor and Control Value Improvement Flowchart ........................................... 375
Figure 10-1 High-Level Process Map for Project Schedule Management ........................................................... 383
Figure 10-2 PMM-010-SCH-010 Plan Project Schedule Management Flowchart ............................................... 386
Figure 10-3 PMM-010-SCH-015 Schedule Management for Initial Planning Flowchart ...................................... 390
Figure 10-4 PMM-010-SCH-020 Schedule Management for Procurement Flowchart ......................................... 392
Figure 10-5 PMM-010-SCH-030 Schedule Management for Design Flowchart .................................................. 398
Figure 10-6 PMM-010-SCH-040 Schedule Management for Construction, Testing & Commissioning and Handover
Flowchart ............................................................................................................................................................. 404
Figure 11-1 High-Level Process Map for Project Cost Management ................................................................... 417
Figure 11-2 PMM-011-COS-020 Plan Project Cost Management Flowchart ....................................................... 421
Figure 11-3 PMM-011-COS-030 Cost Management During the Initial Planning Stage Flowchart ....................... 425
Figure 11-4 Cost Management During the Tender for Design Stage ................................................................... 428
Figure 11-5 PMM-011-COS-040 Cost Management During the Design Stage Flowchart ................................... 430
Figure 11-6 PMM-011-COS-050 Cost Management During the Tender for Construction Stage Flowchart ......... 437
Figure 11-7 PMM-011-COS-060 Control Cost during Construction, Testing & Commissioning and Handover &
Closeout Stages Flowchart .................................................................................................................................. 440
Figure 11-8 PMM-011-COS-070 Payments during Construction, Testing & Commissioning and Handover &
Closeout Stages Flowchart .................................................................................................................................. 447
Figure 11-9 PMM-011-COS-080 Monitor and Control Budget and Cashflow Flowchart ...................................... 454
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Figure 12-1 High-Level Process Map for Project Quality Management ............................................................... 461
Figure 12-2 PMM-012-QUA-010 Plan Project Quality Management Flowchart ................................................... 463
Figure 12-3 PMM-012-QUA-020 Perform Quality Assurance Flowchart.............................................................. 469
Figure 12-4 PMM-012-QUA-030 Perform Quality Control Flowchart ................................................................... 477
Figure 13-1 High-Level Process Map for Project Human Resources Management ............................................. 493
Figure 13-2 PMM-012-QUA-010 Plan Project Human Resource Management Flowchart .................................. 495
Figure 13-3 PMM-013-HUM-020 Acquire the Project Team Flowchart................................................................ 499
Figure 13-4 PMM-013-HUM-050 Close the Project Team Flowchart .................................................................. 508
Figure 14-1 High-Level Process Map for Project Communication Management ................................................. 514
Figure 14-2 PMM-014-COM-010 Plan Project Communications Flowchart ......................................................... 516
Figure 14-3 PMM-014-COM-020 Distribute Confidential Correspondence from Consultant/Contractor to NWC
Flowchart ............................................................................................................................................................. 522
Figure 14-4 PMM-014-COM-030 Distribute Confidential Correspondence from NWC to Consultant/Contractor
Flowchart ............................................................................................................................................................. 524
Figure 14-5 PMM-014-COM-040 Distribute Non-Confidential Correspondence from Consultant to NWC Flowchart
............................................................................................................................................................................ 528
Figure 14-6 PMM-014-COM-050 Distribute Non-Confidential Correspondence from Contractor to NWC Flowchart
............................................................................................................................................................................ 530
Figure 14-7 PMM-014-COM-060 Distribute Non-Confidential Correspondence from NWC to Consultant Flowchart
............................................................................................................................................................................ 533
Figure 14-8 012-COM-070 Distribute Non-Confidential Correspondence from NWC to Contractor Flowchart .... 536
Figure 14-9 PMM-014-COM-080 Distribute Non-Confidential Correspondence from Supervision Consultant to
Contractor Flowchart ........................................................................................................................................... 539
Figure 14-10 PMM-014-COM-090 Distribute Submittals for Approval Flowchart ................................................. 543
Figure 14-11 PMM-014-COM-100 Distribute Non-Conformance Report (NCR) Flowchart .................................. 547
Figure 14-12 PMM-014-COM-110 Distribute Request for Information (RFI) Flowchart ....................................... 553
Figure 14-13 Objectives Cascade Model ............................................................................................................. 557
Figure 14-14 PMM-014-COM-115 Cascade Objectives Flowchart ...................................................................... 557
Figure 14-15 PMM-014-COM-120 Perform Design Performance Reporting Flowchart ....................................... 559
Figure 14-16 PMM-014-COM-130 Perform Construction Performance Reporting Flowchart .............................. 563
Figure 15-1 High-Level Process Map for Project Risk Management ................................................................... 576
Figure 15-2 PMM-015-RIS-010 Risk Management at Portfolio levels Flowchart ................................................. 577
Figure 15-3 Relation between Risk Process and Risk Workshops ...................................................................... 583
Figure 15-4 PMM-015-RIS-020 Plan Project Risk Management at Project Level Flowchart ............................... 584
Figure 15-5 PMM-015-RIS-030 Identify Risks at Project Level Flowchart ........................................................... 588
Figure 15-6 PMM-015-RIS-040 Qualitative Risk Analysis at Project Level Flowchart ......................................... 596
Figure 15-7 PMM-015-RIS-050 Quantitative Risk Analysis at Project Level Flowchart ....................................... 597
Figure 15-8 PMM-015-RIS-060 Plan Risk Responses at Project Level Flowchart .............................................. 600
Figure 15-9 PMM-015-RIS-070 Implement Risk Responses at Project Level Flowchart ..................................... 603
Figure 15-10 PMM-015-RIS-080 Monitor Risk Responses at Project Level Flowchart ........................................ 605
Figure 16-1 High-Level Process Map for Project Procurement Management ...................................................... 614
Figure 16-2 PMM-PRO-010 Plan Purchases and Acquisitions at Portfolio Level Flowchart ................................ 616
Figure 16-3 PMM-016-PRO-020 Plan Project Procurement Management Flowchart .......................................... 622
Figure 16-4 PMM-016-PRO-025 Acquire Project Land ....................................................................................... 626
Figure 16-5 PMM-016-PRO-030 Prepare Tender Documents ............................................................................. 628
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Figure 16-6 PMM-016-PRO-040 Select a Bidder Flowchart ................................................................................ 635

Figure 16-7 PMM-016-PRO-070 Contract Administration Flowchart ................................................................... 643
Figure 16-8 PMM-016-PRO-080 Suspend and Resume Project Flowchart ......................................................... 647
Figure 16-9 PMM-016-PRO-085 Change Project Status from Partial Suspension to Total Suspension Flowchart
............................................................................................................................................................................ 652
Figure 16-10 PMM-016-PRO-090 Withdraw Project Flowchart ........................................................................... 657
Figure 16-11 PMM-016-PRO-100 Contract Closure Flowchart ........................................................................... 670
Figure 17-1 High-Level Process Map for Project Health, Safety & Environmental Management ......................... 679
Figure 17-2 PMM-017-HSE-010 Plan Project HSE Management Flowchart ....................................................... 681
Figure 17-3 PMM-017-HSE-015 Environmental Impact Assessment Flowchart .................................................. 686
Figure 17-4 PMM-017-HSE-020 Perform Health, Safety & Environmental Assurance Flowchart ....................... 689
Figure 17-5 PMM-017-HSE-030 Perform Health, Safety & Environmental Control Flowchart ............................. 699
Figure 18-1 High-Level Process Map for Project Financial Management ............................................................ 715
Figure 18-2 PMM-018-FIN-005 Plan Project Financial Management Flowchart .................................................. 716
Figure 18-3 PMM-018-FIN-015 Develop Project Cash Flow Flowchart ............................................................... 720
Figure 18-4 PMM-018-FIN-020 Perform Financial Control Flowchart .................................................................. 723
Figure 19-1 High-Level Process Map for Project Claim Management ................................................................. 729
Figure 19-2 PMM-019-CLA-005 Plan Project Claim Management Flowchart ...................................................... 732
Figure 19-3 PMM-019-CLA-010 Identify Potential Claims by Reviewing Contract Documents Flowchart ........... 736
Figure 19-4 PMM-019-CLA-020 Avoid Claims Flowchart .................................................................................... 739
Figure 19-5 PMM-019-CLA-030 Assess and Quantify Claim Flowchart .............................................................. 743
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Table of Tables
Table II-1 Project Management Manual Sections .................................................................................................. 15
Table 1-1 Flowchart Shapes Legend ..................................................................................................................... 23
Table 2-1 The Glossary Table ............................................................................................................................... 26
Table 3-1 Project Status Indicators ........................................................................................................................ 92
Table 3-2 Project Life Cycle and Stage Gate Process KPIs .................................................................................. 97
Table 3-3 Project Lifecycle and Stage Gate Process forms, templates and guidelines ......................................... 97
Table 4-1 Five-Year Projects Portfolio Planning KPIs ......................................................................................... 148
Table 4-2 Project Five-Year Projects Portfolio Planning forms, templates and guidelines................................... 148
Table 5-1 Cluster Projects Team Roles that Involved in PMM ............................................................................. 152
Table 5-2 HQ Projects Team Roles that Involved in PMM................................................................................... 153
Table 5-3 Second Party Roles ............................................................................................................................. 155
Table 5-4 Project Team Management forms, templates and guidelines .............................................................. 156
Table 6-1 Project Governance Management KPIs .............................................................................................. 205
Table 6-2 Project Governance Management forms, templates and guidelines .................................................... 209
Table 7-1 Project Integration Management KPIs ................................................................................................. 263
Table 7-2 Project Integration Management forms, templates and guidelines ...................................................... 265
Table 8-1 Project Scope Management KPIs ........................................................................................................ 349
Table 8-2 Project Scope Management forms, templates and guidelines ............................................................. 350
Table 9-1 Project Value Engineering KPIs........................................................................................................... 378
Table 9-2 Project Value Engineering forms, templates and guidelines ................................................................ 378
Table 10-1 Schedule Levels Layout Over Project Life Cycle ............................................................................... 384
Table 10-2 Project Schedule Management KPIs ................................................................................................. 411
Table 10-3 Project Schedule Management forms, templates and guidelines ...................................................... 413
Table 11-1 Cost Estimate Classes ...................................................................................................................... 418
Table 11-2 Project Cost Management KPIs ......................................................................................................... 456
Table 11-3 Project Cost Management forms, templates and guidelines .............................................................. 458
Table 12-1 Project Quality Management KPIs ..................................................................................................... 485
Table 12-2 Project Quality Management forms, templates and guidelines .......................................................... 486
Table 13-1 Project Human Resource Management KPIs .................................................................................... 510
Table 13-2 Project Human Resource Management forms, templates and guidelines ......................................... 510
Table 14-1 Project Communications Management KPIs ..................................................................................... 569
Table 14-2 Project Communications Management forms, templates and guidelines .......................................... 570
Table 15-1 Project Risk Management KPIs ......................................................................................................... 607
Table 15-2 Project Risk Management forms, templates and guidelines .............................................................. 608
Table 16-1 Project Procurement Management KPIs ........................................................................................... 672
Table 16-2 Project Procurement Management forms, templates and guidelines ................................................. 674
Table 17-1 Project Health, Safety & Environmental Management KPIs .............................................................. 706
Table 17-2 Project Health, Safety & Environmental Management forms, templates and guidelines ................... 709
Table 18-1 Project Financial Management KPIs .................................................................................................. 725
Table 19-1 Project Claim Management KPIs ....................................................................................................... 749
Table 19-2 Project Claim Management forms, templates and guidelines ............................................................ 749
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PREAMBLE
PREAMBLE
00_PT03_MN_002.02 13 of 751 05/01/2022

PREAMBLE
I. Purpose
The purpose of this manual is to standardize the Project Management processes, procedures, templates
and forms that applied to all NWC Capital Projects that managed by Projects & Technical Services
sector.
i. Glossary
Refer to PMM section 2.
ii. Ownership
This document is owned by the NWC PMO GM.
iii. Application
This Project Management Manual (PMM) is applicable to all NWC Projects.
iv. Maintenance of This Document
This document will be maintained by the document owner and will follow the Change Management
Process; 00_BEED_PP_001 - Change Management Process.
This document will be reviewed regularly.
v. Document Roles and Responsibilities / Authority Matrix
This manual records the roles and responsibilities specifically related to the document including
who is responsible for the review / endorsement / approval of the document.
Prepare /
Maintain
Update / Review Endorse Approve Publish
Register
Amend
Owner YES
Affected Parties YES
Business Excellence YES YES YES
Capital Projects &

YES
Technical Services VP
12/01/2022 14 of 751 00_PT03_MN_002.02

PREAMBLE
II. Structure of the Manual

This Manual consists of 19 sections presented in the following table:
Table II-1 Project Management Manual Sections
Section
Abbreviation Title
No.
1 IND Introduction
2 GLO Glossary
3 PLC Project Lifecycle and Stage Gate Process
4 FYP Five-Year Projects Portfolio Plan
5 TEA Project Team Management
6 GOV Project Governance Management
7 INT Project Integration Management
8 SCO Project Scope Management
9 VEN Value Engineering
10 SCH Project Schedule Management
11 COS Project Cost Management
12 QUA Project Quality Management
13 HUM Project Human Resource Management
14 COM Project Communications Management
15 RIS Project Risk Management
16 PRO Project Procurement Management
17 HSE Project Health, Safety & Environmental Management
18 FIN Project Financial Management
19 CLA Project Claim Management
00_PT03_MN_002.02 15 of 751 05/01/2022

Section 1 - Introduction
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History Page
Issue Issue Prepared by Reviewed by Owned by Endorsed by Approved by

No. Date (Name) (Name) (Name) (Name) (Name)
Fakhruddin B. Bilal Mohamed A. Adli Khamees S. Alzahrani Talal M. Alahmari Mansour M. Abuthnain
12/01
02 Abdulaziz M. Alshehri Majed A. Aljabri
2022
Abdulaziz K. Aljawan
● The sections abbreviation been changed from “GEN” to “IND”.

● The table 1-1 The Context of This Section of the Project Management Manual is
Change
transferred to permeable section. It is deleted from all sections and contented with
Description
the one in permeable section.
● The paragraph “How to read PMM” is elaborated.
Walid Eldakhs Mohamed Adli Khamees S. Alzahrani Talal M. Alahmari Mansour M. Abuthnain
06/02
01 Fakhruddin Bilal Majed A. Aljabri
2020
Abdullah M. Albani
This section is developed as an update to “Introduction” section in first version the

Project Management Manual (PMM) which developed by Faithful + Gould. The
following are the changes:
Change
Description ● Correcting the name of Projects & Technical Services department.
● Referring to clusters instead of CBU.
● Changing Time Section name to Schedule Management Section.
00_PT03_MN_002.02 17 of 751 05/01/2022

1 Introduction
The subject of this particular section of the Project Management Manual (PMM) is to introduce the
Project Management Manual.
The Project Management Manual (PMM) identifies the principles and objectives of project management
for NWC projects, as mandated by NWC, which must be adhered to by HQ and the Clusters Projects &
Technical Services team members.
1.1 Project Management Manual (PMM)
The Project Management Manual (PMM) identifies the principles and objectives of project
management for NWC projects, as mandated by the NWC Projects & Technical Services
department, and which must be adhered to by NWC Project Managers and their Project Teams.
The management system also includes flowcharts, attachments and learning support materials.
The manual identifies and describes each of these types of management system document in their
context and serves to pull them together into a unified and integrated set.
Project Teams include Second Party Design Consultants, Supervision Consultants and
Contractors, as well as NWC staff from the Clusters and Various NWC staff performing corporate
functions at the headquarters (HQ) in Riyadh also interact with projects on a routine, periodic or
occasional basis. A special example is the NWC Projects & Technical Services department, which
exercises governance over the projects in each Cluster. Other examples include the Procurement
department, which engages the Second Parties through formal tendering and contract award, and
the Finance department, which controls payments to the Second Parties and ensures that adequate
financial resources are available to support the projects. The manual and its underlying
management system are mandated for use by all internal staff and external Second Parties who
are involved in the delivery of NWC projects.
The manual is following the best practice framework of knowledge areas defined in the PMBOK
Guide, issued by the Project Management Institute (PMI).
1.2 PMM Sections
Each section of the manual has its own process map showing the processes. These processes are
numbered in the high-level process map within each section of the manual where user can find the
relevant detail in the format of a flowchart.
The procedures also show how to use the relevant forms, templates or guidelines, which are also
provided as part of the manual and are uniquely identified with system document numbers.
An outline of each section is provided in the following sub-sections:
1.2.1 PMM-001-IND Introduction
The Introduction section (i.e. this section) provides an overview of the management system.
1.2.2 PMM-002-GLO Glossary
The Glossary section defines all the terms used throughout the management system and cites
their sources, for example: the “Project Management Body of Knowledge” (PMBOK)
maintained by the Project Management Institute (PMI), so that the reader may go and research
these sources for their origins and for further information.
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1.2.3 PMM-002-PLC Project Lifecycle

The Project Lifecycle section describes the stages of a project from inception to closure, and
how controlled transitions are made through formal stage gate reviews from one stage to the
next stage.
1.2.4 PMM-004-FYP Five-Year Projects Portfolio Planning
The Five-Year Projects Portfolio Planning section describes the processes for preparing and
obtaining approval on Five-Year Projects Portfolio Plan and Annual Plans for NWC capital
projects.
1.2.5 PMM-005-TEA Project Team Management
The Project Team Management section identifies the roles involved through the lifecycle of the
project. This includes Cluster roles, Second Party roles and corporate HQ roles. Some roles
are hands-on with the project and others interact with projects from time-to-time or on a periodic
basis. All are described in this section, with an accompanying Responsibility Assignment Matrix
(RAM), a Master RACI Matrix, and role descriptions for the hands-on roles.
1.2.6 PMM-006-GOV Governance Management
The Governance Management section largely describes the ongoing roles and responsibilities
of the NWC Projects & Technical Services department, who are the “custodians” of the project
management system. The Projects & Technical Services department includes three main
functions:
● High-level control and oversight of project planning and budgeting.
● High-level control and oversight of project execution.
● Project support services.
All of these functions are mirrored at a lower level in the Clusters.
1.2.7 PMM-007-INT Project Integration Management
The Project Integration Management section describes the project integration activities of the
project team, throughout the project lifecycle. Integration ensures that all aspects of the project
are considered and interlinked at all times. The key supporting document for integration is the
Project Management Plan.
1.2.8 PMM-008-SCO Project Scope Management
The Project Scope Management section describes how the scope of the project is initially
defined, then described in a structured manner as a work breakdown structure, which supports
scope validation and control. For ease of management and reporting, all projects must follow
the standard work breakdown structure defined in this section.
1.2.9 PMM-009-VEN Value Engineering
The Value Engineering section describes the processes and criteria for implementing Value
engineering concepts on NWC projects.
1.2.10 PMM-010-TIM Project Schedule Management
The Project Schedule Management section describes how the work breakdown structure must
include work packages which shall decomposed into clearly defined and sequenced activities,
with clear identification of resource and duration. Thus, a unique schedule is developed for the
project, which can then be monitored, controlled and reported in a standardized manner. Much
of the discipline of Project Schedule Management is “owned” by the second parties who are
00_PT03_MN_002.02 19 of 751 05/01/2022

procured to execute the project. However, the NWC Project Manager has overall responsibility
for ensuring that the project is delivered in a timely manner. This section describes the
mandated approach to Project Schedule Management.
1.2.11 PMM-011-COS Project Cost Management
The Project Cost Management section describes how the cost of executing the project must
initially be estimated, then firmly budgeted and later it must be controlled to within the budget.
Unlike Project Schedule Management, much of the discipline of Project Cost Management is
“owned” by the NWC Project Manager, who has overall responsibility for ensuring that the
project is delivered in a cost-effective manner. This section describes the mandated approach
to Project Cost Management.
1.2.12 PMM-012-QUA Project Quality Management
The Project Quality Management section is a very broad discipline, concerned with ensuring
that internal and external requirements, are properly defined and assuring that the
requirements will be met through effective work processes including control measures. The
approach to quality management follows the universally accepted plan-do-check-act model
(the Deming Cycle) and is described throughout the project lifecycle in this section of the
manual.
1.2.13 PMM-013-HUM Project Human Resource Management
The Project Human Resources Management section describes how the project team is brought
together, how competence requirements are managed (especially in support of quality, health,
safety, environment, risk and value) and how the project team is ultimately closed, with capture
of lessons learned. The NWC approach to human resource management is a collaborative
partnering approach. This approach uses open communications and constructive feedback are
given on issues, performance feedback and opportunities for continuous improvement.
1.2.14 PMM-014-COM Project Communications Management
The Project Communications Management section describes effective communication
processes, through effective stakeholder management, communications planning, information
distribution and performance reporting. All are defined in this section of the manual.
1.2.15 PMM-015-RIS Project Risk Management
The Project Risk Management section describes how project risks are identified, analyzed,
planned, monitored and controlled to the point of mitigation or fruition. This applies throughout
the project lifecycle and the approach to be adopted is scaled to the cost and complexity of the
project from an early stage.
1.2.16 PMM-016-PRO Project Procurement Management
The Project Procurement Management section describes how procurement starts early in the
project with a clear strategy to decide the best contracting method for the project. The process
also involves maintaining a healthy climate of pre-qualification and re-qualification to NWC’s
list of authorized project vendors, as NWC seeks to build long-lasting and effective business
relationships for repeated successes in project execution. A key requirement of procurement
is to include the Project Management Plan in the tender documents whenever seeking to
procure Second Party services for project execution. All of these proactive steps, and the steps
of regular contract administration right up to contract closure, are described in this section of
the manual.
In addition, this section describes the processes of Site Handover, Kickoff Meeting, Project
Suspension and Project Withdrawal.
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The NWC Supply Management Policy and Procedure Manual is cross-referenced where
appropriate.
1.2.17 PMM-017-HSE Project Health, Safety & Environmental Management
The Project Health, Safety and Environmental Management section describes where potential
to cause harm to persons and to the environment is proactively reduced to acceptable minimum
levels. The approaches to planning, assurance and control are described in this section of the
manual.
1.2.18 PMM-018-FIN Project Financial Management
The Project Financial Management section describes how the funding of projects is planned,
controlled, monitored and reported to provide better control on finance processes.
1.2.19 PMM-019-CLA Project Claim Management
Project Claim Management section describes how to seek to avoid claims from both sides:
Second Party to NWC and NWC to Second Party. However, construction is a complex sector
of industry and the possibility of claims always remains high. Therefore, this section of the
manual describes how claims must be identified, quantified and resolved, in the event that the
prescribed methods of prevention cannot deal with every possible situation.
1.3 How to read PMM
It is strongly recommended to read this section first (Introduction Section); then read Section 2
Project Lifecycle and Section 5 (Project Team Management), before looking at the other sections
in any order.
Section 2 Glossary is to occasionally be visited as per required.
Section 6 Governance shall be of most interest to PMO department.
Generally, each section consists of:
● Firstly, a history of the section.
● Secondly, an introduction to the section.
● Thirdly, the section processes are detailed next. Each process contains process objective,
number of policies, procedures and one flowchart. The flowchart corelates procedures
together and in some cases links them to other processes as necessary. Each process
flowchart illustrates how inputs and outputs are linked when applicable.
● Fourthly, the section presents number of Key Performance Indicators (KPIs). Each KPI
explains the subject, the application frequency and measurement scale.
● Fifthly, at the section end, the section attachments (forms, templates and guidelines) are
listed.
The sections “Introduction”, “Project Lifecycle and Stage Gate Process”, “Project Team
Management” and “Glossary” deviate from this section structure as they have no processes. They
are structured as follows:
● Firstly, a history of the section.
● Secondly, an introduction to the section.
● Thirdly, the section details are represented.
● Fourthly, at the section end, the section attachments (forms, templates and guidelines) are
listed.
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To understand how flowcharts are read, let us take the below example for a hypothetical process
PMM-020-XXX-050 which is the fifth process in section 20. The letters XXX are the abbreviation of
the section name (e.g. PRO is for Procurement Section).
In procedure numbering, there is an additional number which distinguishes the procedure within the
process.
Figure 1-1 Example Flowchart
● Horizontal lanes represent the Entities (HQ, Cluster, Design Consultant, Supervision
Consultant or Contractor) which shall perform the procedures in each. This process is
performed by “Design Consultant” and “Cluster”.
● Vertical lanes represent the stages (e.g. Tender for Design, Design, Tender for Construction,
Construction etc.) in which the procedures are performed. This process is performed in 2
stages “Tender for Design Stage” and “Design Stage”.
● If a template is used in a procedure, it shall be located above the procedure.
● The person who is responsible to perform a procedure, his role shall be located below the
procedure.
● Every procedure located on a horizonal boundary (e.g. PMM-020-XXX-050-040) is
performed jointly by the two parties.
● Every procedure located on a vertical boundary (e.g. PMM-020-XXX-050-020) can be
performed during one or both of the stages.
● The shapes which are illustrated in the flowchart are described in the below table.
TO PERFORM ANY PROCESS, DO NOT RELY ON FLOWCHART ONLY APART OF THE
OBJECTIVE, POLICIES, PROCEDURES AND FORMS OF THE PROCESS.
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Table 1-1 Flowchart Shapes Legend
Ser Item Shape Description
Related process belongs to the same

1 Process in blue
process section.
2 Procedure in blue Procedure belongs to this process.
Related process belongs to a different

3 Process in white
section.
Related procedure belongs to a

4 Procedure in white
different process.
The roles of responsible people that

5 Roles performs the procedure.
Observe, responsible not accountable.
Input or output document to a

6 Document
procedure or process.
Information related to a process or

procedure that describes a subsequent
7 Information
action by a department other than
Projects department.
1.4 Supporting Documents

The types of supporting document provided with the Project Management Manual include
flowcharts, forms, templates guidelines, training materials and PMM handbook.
1.4.1 List of attachments
Each section of the manual includes a list of the attachments (forms, templates and guidelines)
associated with the section.
1.4.2 List of learning support materials
The HR section of the manual includes list of the learning support materials. Refer to Section
11 Project Human Resource Management for role-based training.
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Section 2 - Glossary
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History Page

12/01
2022 Abdulaziz K. Aljawan
● The section abbreviation been changed from “GEN” to “GLO”.
Change ● Number of terminologies are revised.

Description ● Number of terminologies are removed.
● Number of terminologies are added.
06/02
2020 Abdullah M. Albani
This section is developed as an update to “Glossary” section in first version the Project
Management Manual (PMM) which developed by Faithful + Gould. The following are
Change the changes:
Description
● Added number of definitions.
● Deleted number of definitions.
00_PT03_MN_002.02 25 of 751 05/01/2022

2 Glossary
The subject of this particular section of the Project Management Manual (PMM) is the Glossary for the
PMM.
2.1 Glossary Table
Table 2-1 The Glossary Table
Term Definition
AACE International Association for Advancement of Cost Engineering.
Accept The act of formally receiving or acknowledging something and regarding it

as being true, sound, suitable or complete.
Acceptance Criteria Those defined, written criteria, including performance requirements and
essential conditions, which must be met before project deliverables can be
accepted.
Acquire Project The process of obtaining the human resources needed to complete the
Team project.
Activity A component of work performed during the course of a project.
Activity Attributes Multiple attributes associated with each schedule activity that can be
included within the activity list. Activity attributes include activity codes,
predecessor activities, successor activities, logical relationships, leads and
lags, resource requirements, imposed dates, constraints and assumptions.
Activity Code One or more numerical or text values that identify characteristics of the
work or in some way categorize the schedule activity that allows filtering
and ordering of activities within reports.
Activity Definition The process of identifying the specific schedule activities that need to be
performed to produce the various project deliverables.
Activity Description A short phrase or label for each schedule activity used in conjunction with
(AD) an activity identifier to differentiate that project schedule activity from other
schedule activities. The activity description normally describes the scope of
work of the schedule activity.
Activity Duration The time in calendar units between the start and finish of a schedule
activity. See also Actual Duration, Original Duration and Remaining
Duration.
Activity Duration The process of estimating the number of work periods that will be needed
Estimating to complete individual schedule activities.
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Term Definition
Activity Identifier A short unique numeric or text identification assigned to each schedule
activity to differentiate that project activity from other activities. Typically,
unique within any one project schedule network diagram.
Activity List A documented tabulation of schedule activities that shows the activity
description, activity identifier, and a sufficiently detailed scope of work
description so project team members understand what work is to be
performed.
Activity Resource The process of estimating the types and quantities of resources required to
Estimating perform each schedule activity.
Activity Sequencing The process of identifying and documenting dependencies among

schedule activities.
Activity Weights A value assigned to activities, often in terms of worker hours
Actual Cost (AC) Total costs actually incurred and recorded in accomplishing work
performed for a schedule activity or work breakdown structure component.
Actual cost can sometimes be direct labor hours alone, direct costs alone,
or all costs including indirect costs. Also referred to as the Actual Cost of
Work Performed (ACWP). See also Earned Value Management and
Earned Value Technique
Actual Cost of Work See Actual Cost (AC)

Performed (ACWP)
Actual Duration The time in calendar units between the actual start date of the schedule
activity and either the data date of the project schedule if the schedule
activity is in progress or the actual finish date if the schedule activity is
complete.
Actual Finish Date The point in time that work actually ended on a schedule activity. (Note: in
(AF) some application areas, the schedule activity is considered “finished” when
work is “substantially complete”).
Actual Percent See Physical Percent Complete

Complete
Actual Start Date The point in time that work actually started on a schedule activity.
(AS)
Advanced Payment A payment to a second party who is awarded a Contract with an approved
budget. This payment is paid to the second party at amount and time
identified in the contract.
Advanced Payment A bank bond provided by contractor to get an advance payment. It equals
Bond to the advance payment.
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Term Definition
Alternate Dispute Methods, other than litigation, for resolving disputes including arbitration,
Resolution (ADR) mediation and mini-trials.
Analogous An estimating technique that uses the values of parameters, such as scope,
Estimating cost, budget and duration, or measures of scale, such as size, weight and
complexity, from a previous, similar activity as the basis for estimating the
same parameter or measure for a future activity. It is frequently used to
estimate a parameter when there is a limited amount of detailed information
about the project (e.g. in the early phases).
Analogous estimating is a form of expert judgment. Analogous estimating
is most reliable when the previous activities are similar in fact and not just
in appearance, and the project team members preparing the estimates
have the needed expertise.
Annual Capital It is a slice of the Five-Year Projects Portfolio Plan for the forthcoming year
Works Plan (ACWP) only.
It reflects the Capital Works planned for only the next year and the
associated financial obligations.
This plan is required by the Ministry of Finance (MOF) to formally assess
and ultimately grant annual budget to NWC.
Application Area A category of projects that have common components significant in such
projects but are not need or present in all projects. Application areas are
usually defined in terms of either the product (i.e. by similar technologies or
production methods) or the type of customer (i.e. internal versus external,
government versus commercial) or industry sector (i.e. utilities, automotive,
aerospace, information technologies). Application areas can overlap.
Approve The act of formally confirming, sanctioning, ratifying, or agreeing to

something.
Approved Variation A variation request that has been processed through the Variation Control
process and approved.
Arrow The graphic presentation of a schedule activity in the Arrow Diagramming

Method or a logical relationship between schedule activities in the
Precedence Diagramming Method.
Arrow Diagramming A schedule network diagramming technique in which schedule activities are
Method (ADM) represented by arrows. The tail of the arrow represents the start, and the
head represents the finish of the schedule activity. (The length of the arrow
does not represent the expected duration of the scheduled activity.)
Schedule activities are connected at points called nodes (usually drawn as
small circles) to illustrate the sequence in which the schedule activities are
expected to be performed.
See also Precedence Diagramming Method
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Term Definition
Asset Management Asset Management Strategy focuses on optimized management of the

whole life of assets. Having a clear understanding of the asset base, its
capabilities and service performance; improving information to allow
efficient proactive risk based management of assets.
Maintaining assets proactively to prevent service failures.
Rolling 4 to 6 year plans for the capital intervention, operation, and
maintenance of specific assets.
Asset Master Plans are a set of generic policies and standards for an asset
group and it is the responsibility of the Asset Planners to apply these
policies to individual assets/sites and develop site-specific lifecycle plans.
Assumptions Assumptions are factors that, for planning purposes, are considered to be
true, real or certain without proof or demonstration. Assumptions affect all
aspects of project planning and are part of the progressive elaboration of
the project. Project teams frequently identify, document and validate
assumptions as part of their planning process.
Assumptions generally involve a degree of risk.
Audit Systematic, independent and documented process for obtaining audit

evidence and evaluating it objectively to determine the extent to which audit
criteria are fulfilled.
Audit Evidence Records, statements of fact or other information which are relevant to the
audit criteria and verifiable.
Audit Findings Results of the evaluation of the collected audit evidence against audit
criteria.
Audit Plan Description of the activities and arrangements for an audit.
Audit Schedule Set of one or more audits planned for a specific time frame and directed
towards a specific purpose.
Audit Scope Extent and boundaries of an audit.
Audit Team One or more auditors conducting an audit, supported if needed by technical
experts.
Auditee Organization being audited.
Auditor Person with the demonstrated personal attributes and competence to

conduct an audit.
Authority The right to apply project resources, expend funds, make decisions, or give
approvals.
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Term Definition
Backward Pass The calculation of late finish dates and late start dates for the uncompleted
portions of all schedule activities. Determined by working backwards
through the schedule network logic from the project’s end date. The end
date may be calculated in a forward pass or set by the customer or sponsor.
See also Schedule Network Analysis
Bar Chart A graphic display of schedule-related information. In the typical bar chart,
schedule activities or work breakdown structure components are listed
down the left side of the chart, dates are shown across the top and activity
durations are shown as date-placed horizontal bars. Also called a Gantt
chart.
Baseline Finish Date The finish date of a schedule activity in the approved schedule baseline.
See also Scheduled Finish Date
Baseline Start Date The start date of a schedule activity in the approved schedule baseline. See
also Scheduled Start Date
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Term Definition
Basic Design Data It is a project specific document that generated by the Design Consultant
(BDD) in full and prompt assistance from NWC. BDD describes the current site
conditions which are required to design the project.
BDD shall be completed early at the beginning of the design stage and
submitted to NWC for approval. BDD to be developed and approved before
finalizing:
● Project Design Basis Report (DBR)
● Design Criteria.
BDD must be updated by the Design Consultant as required throughout the
design stage.
BDD includes but not limited to the following:
● Prepared by Design Consultant
○ Brief project description describes project capacity, design
requirements, risks, open issues, etc. (extracted from RFP).
○ HSE plan
○ Meteorological Information
○ Any other information / data stated in the contract.
● Provided by NWC
○ Environmental Studies
○ Meteorological Studies
○ Seismic studies
○ Topographical Survey Plans
○ Tidal records
○ Land Boundary Plans
○ Geotechnical reports (Site Investigation and Interpretive).
○ Existing Utility surveys reports and future utility plans.
○ NWC design guidelines / templates / checklists.
○ NWC standard technical specifications and BoQ.
○ NWC project related policies and regulations such as HSE,
Assets, etc.
○ Any other information / data stated in the contract.
BCR The ratio of benefits to costs of a project, calculated using an NPV

approach.
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Term Definition
Benchmark A point of reference for measuring against, i.e. Project progress, cost and
quality. Benchmarking evaluates various aspects of a project (or process)
in relation to best practice or agreed parameters.
Bill of Materials A documented formal hierarchical tabulation of the physical assemblies,

(BOM) sub-assemblies and components needed to fabricate a product.
Blueprint The detailed schedule, plan, strategy or manual for progressing forward.
BOQ Bills of Quantity
Bottom-up A method of estimating a component of work. The work is decomposed into

Estimating more detail. An estimate is prepared of what is needed to meet the
requirements of each of the lower, more detailed pieces of work, and these
estimates are then aggregated into a total quantity for the component of
work. The accuracy of bottom-up estimating is driven by the size and
complexity of the work identified at the lower levels. Generally smaller work
scopes increase the accuracy of the estimates.
Brainstorming A general data gathering and creativity technique that can be used to
identify risks, ideas or solutions to issues by using a group of team
members or subject-matter experts. Typically, a brainstorming session is
structured so that each participant’s ideas are recorded for later analysis.
Budget The approved estimate for the project or any work breakdown structure
component or any schedule activity. See also Estimate
Budget at The sum of all the budgets established for the work to be performed on a
Completion (BAC) project or a work breakdown structure component or a schedule activity.
The total planned value for the project.
Budget Cap / An annual limit on the Capital Expenditure (CAPEX) of NWC over a period
CAPEX Cap of Five-Year -set by the Ministry of Finance.
Budgeted Cost of See Earned Value (EV)

Work Performed
(BCWP)
Budgeted Cost of See Planned Value (PV)

Work Scheduled
(BCWS)
Calendar Unit The smallest unit of time used in scheduling the project. Calendar units are
generally in hours, days or weeks, but can also be in quarter years, months,
shifts or even in minutes.
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Term Definition
Capability Ability of an organization, system or process to realize a product that will

fulfil the requirements for that product.
CAPEX Capital Expenditure
Capital Development The Capital Development Plan is a five-year Asset Management Plan
Plan focused each financial year (April to March) into a CAPEX plan. The
CAPEX plan is submitted to the Ministry of Water and Electricity and the
Ministry of Finance, in order to obtain ministerial approval and to secure
budgetary funding on an annual basis. During this process, the asset
requirements are described in terms of project requirements, in order to
deliver the intended asset at the right time, cost and quality.
Capital Works Plan An annual submission by Entities to the MOF for budget review / approval.
Cash Flow Forecast Modeling of NWC’s expected future financial commitment to projects /
assets based on current information.
CBA Cost Benefit Analysis
CEDA Council of Economic and Developmental Affairs
Center for Spending It is a governmental agency that is responsible for ensuring the efficiency
Efficiency (CSE) of expenditure in governmental projects.
In February 2021, it is merged with National Project Management
Organization (Mashroat) to constitute Expenditure Efficiency & Projects
Authority (EXPRO)
Characteristic Distinguishing feature.
Chart of Accounts Any numbering system used to monitor project costs by category (e.g.
labor, supplies, materials and equipment). The project chart of accounts is
usually based upon the corporate chart of accounts of the primary
performing organization.
Contrast with Code of Accounts.
Checklist Items listed together for convenience of comparison, or to ensure the

actions associated with them are managed appropriately and not forgotten.
An example is a list of items to be inspected that is created during quality
planning and applied during quality control.
Claim A request, demand or assertion of rights by a seller against a buyer, or vice

versa, for consideration, compensation, or payment under the terms of a
legally binding contract.
Close Project The process of finalizing all activities across all of the project process
groups to formally close the project or phase.
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Term Definition
Closing Processes Those processes performed to formally terminate all activities of a project
or stage and transfer the completed product to others or close a cancelled
project.
Co-Location An organizational placement strategy where the project team members are
physically located close to one another in order to improve communication,
working relationships and productivity.
Commencement The date of the Contract Agreement

Date
Communication A process through which information is exchanged among persons using a

common system of symbols, signs or behaviors.
Communication The document that describes: the communications needs and expectations
Management Plan for the project; how and in what format information will be communicated;
when and where each communication will be made; and who is responsible
for providing each type of communication. A communications management
plan section can be formal or informal, highly detailed or broadly framed,
based on the requirements of the project stakeholders. The communication
management plan is contained as a section in the Project Management
Plan.
Communications The process of determining the information and communications needs of

Planning the project stakeholders: who they are, what is their level of interest and
influence on the project, who needs what information, when will they need
it, and how it will be given to them.
Compensation Something given or received, a payment or recompense, usually something

monetary or in kind, for products, services or results provided or received.
Competence Demonstrated personal attributes and demonstrated ability to apply

knowledge and skills.
Configuration A component of the project management plan that describes how to identify
Management Plan and account for project artifacts under configuration control, and how to
record and report changes to them.
Primarily, it describes how control the version of project’s assets
Configuration A collection of procedures used to track project artifacts and monitor and
Management control changes to these artifacts.
System
Primarily, it is version control for the organization's assets.
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Term Definition
Constraint The state, quality or sense of being restricted to a given course of action or
inaction. An applicable restriction or limitation, either internal or external to
the project that will affect the performance of the project or a process. For
example, a schedule constraint is any limitation or restraint placed on the
project schedule that affects when a schedule activity can be scheduled
and is usually in the form of fixed imposed dates. A cost restraint is any
limitation or restraint placed on the project budget such as funds available
over time. A project resource constraint is any limitation or restraint placed
on resource usage, such as what resource skills or disciplines are available
and the amount of a given resource available during a specified time frame.
Constructability The ease, safety, economy, and clarity of construction of a project. It mainly
focuses on reviewing:
● Logic of activity relations.
● Colocation in execution works.
Constructability A review performed by personnel with expert knowledge of projects (or

Review project components) that are similar in size, cost, and complexity, for
purposes of assessing or determining the following:
● whether the work can be performed with the available means,
methods, and resources while complying with the established
schedule phasing, quality requirements.
● whether specialists are required.
● whether an alternative design is required.
Constructability Reviews usually incorporate Value Engineering.
Construction Is the overall planning, co-ordination and control of a construction project.

Management Depending on contracts, this could be from design to completion or from
award of the construction contract to completion.
Construction Permit Means the permit to commence construction activities issued by the
relevant municipality.
Contract A contract is a mutually binding agreement that obligates the seller to

provide the specified product or service or result and obligates the buyer to
pay for it.
Contract The process of managing the contract and the relationship between the
Administration buyer and the seller, reviewing and documenting how a seller is performing
or has performed to establish required corrective actions and provide a
basis for future relationships with the seller, managing contract related
variations and, when appropriate, managing the contractual relationship
with the outside buyer of the project.
Contract Closure The process of completing and settling the contract, including resolution of
any open items and closing each contract.
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Term Definition
Contract Documents Documents that consist of an agreement between owner (client) and
Contractor, and include conditions of the contract, drawings, specifications,
and other documents listed in the agreement.
Contractor An individual or a company (commonly referred to as the seller), who is

responsible for providing all of the resources necessary to manage and
perform the work in the contract documents. The Contractor may choose
to subcontract work to other entities such as Contractors with specialized
expertise, material and equipment vendors, and testing services.
Control Comparing actual performance with planned performance, analyzing

variances, assessing trends to effect process improvements, evaluating
possible alternatives, and recommending appropriate corrective action as
needed.
Measure that is modifying risk.
Corrective Action Documented direction for executing the project work to bring expected
future performance of the project work in line with the Project Management
Plan.
Action to eliminate the cause of a detected nonconformity or other
undesirable situation.
Cost The monetary value or price of a project activity or component that includes
the monetary worth of the resources required to perform and complete the
activity or component, or to produce the component. A specific cost can be
composed of a combination of cost components including direct labor
hours, other direct costs, indirect labor hours, and purchased price.
(However, in the earned value management methodology, in some
instances, the term cost can represent only labor hours without conversion
to monetary worth.) See also Actual Cost and Estimate
Cost Baseline See Baseline
Cost Benefit The quantification of a Value Improvement (VI) Opportunity in terms of the
Analysis (CBA) cost of realizing the potential benefits considered against the value of the
potential benefits.
Cost Budgeting The process of aggregating the estimated costs of individual activities or
work packages to establish a cost baseline.
Cost Control The process of influencing the factors that create variances and controlling
variations to the project budget.
Cost Estimate Evaluation of all costs of the elements of a project or effort as supported by
an agreed-upon-scope
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Term Definition
Cost Estimating The process of developing an approximation of the cost of the resources
needed to complete project activities.
Cost Management The document that sets out the format and establishes the activities and
Plan criteria for planning, structuring and controlling the project costs. A cost
management plan can be formal or informal, highly detailed or broadly
framed, based on the requirements of the project stakeholders. The cost
management plan is contained in, or is a subsidiary plan of, the Project
Management Plan.
Cost Performance A measure of cost efficiency on a project. It is the ratio of earned value (EV)
Index (CPI) to actual costs (AC). CPI = EV divided by AC. A value equal to or greater
than one indicates a favorable condition and a value less than one indicates
an unfavorable condition.
Cost Variance (CV) A measure of cost performance on a project. It is the algebraic difference
between earned value (EV) and actual cost (AC). CV = EV minus AC. A
positive value indicates a favorable condition and a negative value
indicates an unfavorable condition.
Crashing A specific type of project schedule compression technique performed by

taking action to decrease the total project schedule duration after analyzing
a number of alternatives to determine how to get the maximum schedule
duration compression for the least additional cost. Typical approaches for
crashing include reducing schedule activity durations and increasing the
assignment of resources on schedule activities. See Schedule
Compression and Fast Tracking
Create WBS (Work The process of subdividing the major project deliverables and project work
Breakdown into smaller, more manageable components.
Structure)
Criteria Standards, rules or tests on which a judgment or decision can be based, or

by which a product, service, result or process can be evaluated.
Critical Activity Any schedule activity on a critical path in a project schedule. Most
commonly determined by using the Critical Path Method. Although some
activities are “critical”, in the dictionary sense, without being on the critical
path, this meaning is seldom used in the project context.
Critical Chain A schedule network analysis technique that modifies the project schedule
Method to account for limited resources. The critical chain method mixes
deterministic and probabilistic approaches to schedule network analysis.
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Term Definition
Critical Path Generally, but not always, the sequence of schedule activities that
determines the duration of the project. Generally, it is the longest path
through the project. However, a critical path can end, as an example, on a
schedule milestone that is in the middle of the project schedule and that
has a finish-no-later- than imposed date schedule constraint. See also
Critical Path Method
Critical Path Method A schedule network analysis technique used to determine the amount of
scheduling flexibility (the amount of float) on various logical network paths
in the project schedule network, and to determine the minimum total project
duration. Early start and early finish dates are calculated by means of a
forward pass, using a specified start date. Late start and finish dates are
calculated by means of a backward pass, starting from a specified
completion date, which sometimes is the project early finish date
determined during the forward pass calculation.
CSE Center for Spending Efficiency which responsible for reviewing of annual
Entity Draft Five-Year Projects Portfolio Plans
Current Finish Date The current estimate of the point in time when a schedule activity will be
completed, where the estimate any reported work progress. See also
Scheduled Finish Date and Baseline Finish Date
Current Invoice A payment certificate other than the Final Invoice that issued to a second
party against his works in a project.
Also known as Interim Payment.
Current Start Date The current estimate of the point in time when a schedule activity will begin,
where the estimate any reported work progress. See also Scheduled Start
Date and Baseline Start Date
Customer The person or organization that will use the project’s product or service or
result. See also User
Organization or person that receives a product.
Customer Customer's perception of the degree to which the customer's requirements

Satisfaction have been fulfilled.
Cutoff Date The date up to or through which the project’s reporting system has provided
actual status and accomplishments. In some reporting systems, the status
information for the data date is included in the past and in some systems
the status information is in the future. Also known as data date.
Date A term representing the day, month and year of a calendar, and in some
instances, the time of day.
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Term Definition
Decomposition An imperfection or deficiency in a project component where that component

does not meet its requirements or specifications and needs to be either
repaired or replaced.
Defect An imperfection or deficiency in a project component where that component

does not meet its requirements or specifications and needs to be either
repaired or replaced.
Non-fulfilment of a requirement related to an intended or specified use.
Defect Notification Means the period for notifying defects in the Works or a Section (as the
Period case may be), which for the purposes of the Contract shall be 24 months,
calculated from the date on which the Works are completed (Taking Over
of the Works and Sections).
Defect Repair Formally documented identification of a defect in a project component with

a recommendation to either repair the defect or completely replace the
component.
Delegation of It is the action of:

Authority
● transferring one’s responsibility(s) to an inferior.
or
● transferring an inferior responsibility(s) to another inferiors.
Delegating authority benefits work by:
● Releases the delegator for other responsibilities
● Increases team productivity
● Enables continuity of ongoing processes
● Develops delegated employee
● Motivate delegated employee
Delegation must be formal and written.
Deliverable Any unique and verifiable product, result, or capability to perform a service
that must be produced to complete a process, phase, or project. Often used
more narrowly in reference to an external deliverable, which is a deliverable
that is subject to approval by the project stakeholders. See also Product,
Service and Result
Delivery Systems Various methods of performing design/construction projects such as

design-bid-build and design-build.
Dependability Collective term used to describe the availability performance and its
influencing factors: reliability performance, maintainability performance and
maintenance support performance.
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Term Definition
Descriptor Quantity or Measure (referred to within this document as the Yardstick).
Design and Set of processes that transforms requirements into specified characteristics
Development or into the specification of a product, process or system.
Design Basis Report It is a project specific document that:

(DBR)
● developed to describe:
○ the functions and deliverables that the Design Consultant shall
design for every requirement.
○ how the proposed scope (designed deliverables) shall fulfill the
requirements in the approved OPR.
● developed early at the beginning of the design stage.
● developed by the Design Consultant.
● submitted to NWC for approval after approval of Basic Design Data
(BDD).
● updated by the Design Consultant as required throughout the design
stage.
Main contents of DBR includes but not limited to:
● Project purpose and requirements
● Related work
● Detailed breakdown of the proposed project scope such as (it is not
a WBS):
○ Site location and access (existing and proposed).
○ List/type/foot prints of all deliverables that the Design
Consultant shall design with required facilities.
○ Description of how the proposed scope (designed deliverables)
shall fulfill the requirements in the approved OPR.
● References and precedents shall be used to design operational
system and infrastructure component of the Project.
● Any required demolitions and assumptions made which need
verification by NWC.
Design Management The management, supervision and evaluation of the design process to
achieve the objectives/criteria set by the project. The project could be the
Employer’s vision, specific requirements, a system or process, or a
strategy.
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Term Definition
Design Packages 10% Conceptual

30% Preliminary
60% and 90% Detailed
100% Complete.
See the “EPM-KE0-PR-000002 Design Review Procedure” for the detailed
contents of each package.
Design Review A management technique used for evaluating a proposed design to ensure
that the design of the project meets the Employer’s Requirements or to
assure that the design will perform successfully, can be built and can be
maintained.
Design-Bid-Build A project life cycle in which the design is completed by a professional

architect or engineer then a construction contract is tendered and awarded
after competitive bids.
Design-Build A project life cycle in which the Contractor is responsible for all aspects of
the design and construction of the product in the project contract. The
scope of the contract includes management and design services;
preparation and execution of construction documents; and construction,
Testing & Commissioning of the product.
Develop Project The process of improving the competencies and interaction of team
Team members to enhance project performance.
Deviation Permit Permission to depart from the originally specified requirements of a product
prior to realization.
Direct and Manage The process of executing the work defined in the Project Management Plan
Project Execution to achieve the project’s requirements defined in the project scope
statement.
Discipline A field of work requiring specific knowledge and that has a set of rules
governing work conduct (e.g. civil engineering, cost estimating, etc.)
Discrete Effort Work effort that is separate, distinct and related to the completion of specific
work breakdown structure components and deliverables, and that can be
directly planned and measured. Contrast with Apportioned Effort
Dispute Review A board formed at the start of or early in the project to review and adjudicate
Board any disputes that may arise.
Document A structured method for the control of incoming and outgoing documents.
Management Can be an analogue system or more commonly electronic.
System
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Term Definition
Documented A formalized written description of how to carry out an activity, process,

Procedure technique or methodology.
Drawings Means the drawings of the Works, as included in the Contract, and any
additional and modified drawings issued by (or on behalf of) the Employer
in accordance with the Contract.
Dummy Activity A schedule activity of zero duration used to show a logical relationship in
the arrow diagramming method. Dummy activities are used when logical
relationships cannot be completely or correctly described with schedule
activity arrows. Dummy activities are generally shown graphically as a
dashed line headed by an arrow.
Duration The total number of work periods required to complete a schedule activity
or work breakdown structure component. Usually expressed as workdays
or workweeks. Sometimes incorrectly equated with elapsed time. Contrast
with Effort. See also Original Duration, Remaining Duration and Actual
Duration.
Early Finish Date In critical path method, the earliest possible point in time on which the
(EF) uncompleted portions of a schedule activity (or the project) can finish,
based on the schedule network logic, the data date, and any schedule
constraints. Early finish dates can change as the project progresses and as
changes are made to the Project Management Plan.
Early Start Date (ES) In critical path method, the earliest possible point in time on which the
uncompleted portions of a schedule activity (or the project) can start, based
on the schedule network logic, the data date, and any schedule constraints.
Early start dates can change as the project progresses and as changes are
made to the Project Management Plan.
Earned Value (EV) The value of work performed expressed in terms of the approved budget
assigned to that work for a schedule activity or work breakdown structure
component. Also referred to as the Budgeted Cost of Work Performed.
Earned Value A management methodology for integrating scope, schedule and

Management (EVM) resources, and for objectively measuring project performance and
progress. Performance is measured by determining the budgeted cost of
work performed (i.e. earned value) and comparing it to the actual cost of
work performed (i.e. actual cost). Progress is measured by comparing the
earned value to the planned value.
Earned Value A specific technique for measuring the performance of work and used to
Technique (EVT) establish the performance measurement baseline (PMB).
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Term Definition
Effectiveness Extent to which planned activities are realized and planned results
achieved.
Efficiency Relationship between the result achieved and the resources used.
Effort The number of labor units required to complete a schedule activity or work
breakdown structure component. Usually expressed as staff hours, staff
days, or staff weeks. Contrast with duration.
Electronic Project Utilizing technology to provide a controlled environment for managing

Control Systems documents, contracts, cost, Schedule, and resources, allowing staff to be
(EPCS) notified of issues, deliverables and completed tasks to make informed
decisions.
Engineer Means the person appointed by the Cluster (Employer’s Representative) to

act as the Engineer for the purposes of the Contract and named in the
Particular Conditions, or other person appointed from time to time by the
Cluster.
See also Supervision Consultant
Enterprise A company, business, firm, partnership, corporation or governmental

agency.
Enterprise Any or all external environmental factors and internal organizational factors
Environmental that surround or influence the project’s success. These factors are from any
Factors or all of the enterprises involved in the project and include organizational
culture and structure, infrastructure, existing resources, commercial
databases, market conditions and project management software.
EOT Extension-of-Time
EPC Engineering-Procurement-Construction
EPCC Engineering-Procurement-Construction-Commissioning
EPCM Engineering-Procurement-Construction-Management
Establishing the Defining the external and internal parameters to be taken into account
Context when managing risk and setting the scope and risk criteria for the risk
management policy.
Estimate A quantitative assessment of the likely amount or outcome. Usually applied

to project costs, resources, effort and durations and is usually preceded by
a modifier such as (preliminary, conceptual, feasibility, order of magnitude).
It should always include some indication of accuracy (e.g. +/- X%).
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Term Definition
Estimate at The expected total cost of a schedule activity, a work breakdown structure
Completion (EAC) component, or the project when the defined scope of work will be
completed. EAC is equal to the actual cost (AC) plus the estimate to
complete (ETC) for all the remaining work. EAC = AC plus ETC. The EAC
may be calculated based on performance to date or estimated by the
project team based on other factors, in which case it is often referred to as
latest revised estimate. See also Earned Value Technique and Estimate to
Complete.
Estimate Classification of estimate, from Class 5 - Class 1, based on the level of

Classification project definition which defines the level of estimate accuracy.
The classes range from the lowest level of project definition and accuracy
in Class 5 to the highest level in Class 1:
● Class 5 (Indicative / Conceptual) in Strategic Planning stage at Initial
Business Case development.
● Class 4 (Feasibility / Order of magnitude) in Strategic Planning stage
at Final Business Case development.
● Class 3 (Preliminary) in stage 4 at 30% design completion.
● Class 2 (Engineer’s) in stage 4 at 90% design completion.
● Class 1 (Definitive) in stage 5 at award completion.
Estimate to The expected cost needed to complete all the remaining work for a
Complete (ETC) schedule activity, work breakdown structure component, or the project. See
also Earned Value Technique and Estimate at Completion
Event Something that happens, an occurrence, an outcome. Occurrence or

change of a particular set of circumstances.
Exception Report Document that includes only major variations from the plan (rather than all
variations).
Execute Directing, managing, performing and accomplishing the project work,

providing the deliverables and providing work performance information.
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Term Definition
Executive Summary A short document or section of a document produced for business

purposes that summarizes a longer report or proposal or a group of related
reports in a way enables readers to rapidly become acquainted with the
larger summarized source/s without having to read it all.
For one topic document, executive summary usually contains a brief
statement of the problem covered in the major document(s), background
information, concise analysis, proposed solutions and main conclusions.
Also known as Management Summary.
An executive summary differs from an abstract in that an abstract will
usually be shorter and is considered an overview or orientation rather than
being a condensed version of the full document.
Exit Interviews Interviews of construction (and project) staff as they leave the project as a
means to record lessons learned.
Expected Monetary A statistical technique that calculates the average outcome when the future
Value (EMV) includes scenarios that may or may not happen. A common use of this
Analysis technique is within decision tree analysis. Modeling and simulation are
recommended for cost and schedule risk analysis because it is more
powerful and less subject to misapplication than expected monetary value
analysis.
Expenditure It is a governmental agency that constituted by mering, in February 2021,

Efficiency & Projects the National Project Management Organization (Mashroat) and the Center
Authority (EXPRO) for Spending Efficiency (CSE).
See:
● National Project Management Organization (Mashroat)
● Center for Spending Efficiency (CSE).
Expert Judgment Judgment provided based upon expertise in an application area,

knowledge area, discipline, industry etc. as appropriate for the activity
being performed. Such expertise may be provided by any group or person
with specialized education, knowledge, skill, experience or training and is
available from many sources including, other units within performing
organization, Consultants, stakeholders, professional and technical
associations and industry groups.
External Context External environment in which the organization seeks to achieve its
objectives.
Fast Tracking A specific project schedule compression technique that changes network
logic to overlap phases that would normally be done in sequence, such as
the design phase and construction phase, or to perform schedule activities
in parallel. See Schedule Compression
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Term Definition
Feasibility Study An early engineering and financial analysis of a proposed project to

determine its viability.
Final Invoice The last payment certificate issued to a second party against his works in
a project.
Also known as Final Payment.
Finish Date A point in time associated with a schedule activity’s completion. Usually
qualified by one of the following actual, planned, estimated, scheduled,
early, late, baseline, target or current.
Finish-to-Finish (FF) The logical relationship where completion of work of the successor activity
cannot finish until the completion of work of the predecessor activity. See
also Logical Relationship
Finish-to-Start (FS) The logical relationship where initiation of work of the successor activity
cannot finish until the completion of work of the predecessor activity. See
also Logical Relationship
Five Case Model An approach to business cases, created by the UK Treasury and since
adopted worldwide.
Five-Year Projects The group NWC Projects that shall be executed in specific five years. It is
Portfolio (FYPP) annually updated.
Five-Year Projects The schedule of NWC Projects that shall be executed in specific five years.
Portfolio Plan It is annually updated.
(FYPPP)
Float Also called slack. See Total Float and Free Float.
Flowchart The diagram depicts the process procedures in sequent relation. Inputs,
outputs and comments are depicted when required. It may depict related
processes or related procedures from other processes.
Force Majeure An event not reasonably anticipated and acts of God, such as weather,
strikes, or other uncontrollable events.
Forecasts Estimates or predictions of conditions and events in the project’s future

based on information and knowledge available at the time of the forecast.
Forecasts are updated and re-issued based on work performance
information provided as the project is executed. The information is based
on the project’s past performance and expected future performance and
includes information that could impact the project in the future, such as
estimate at completion and estimate to complete.
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Term Definition
Forward Pass The calculation of the early start and early finish dates for the uncompleted
portions of all network activities. See also Schedule Network Analysis and
Backward Pass.
Free Float The amount of time that a schedule activity can be delayed without delaying
the early start of any immediately following schedule activities. See also
Total Float.
Fringe Benefits Costs of labor beyond wages. Such items may include vacation, holidays,
insurance, and taxes.
Function An action (or intended purpose), that must be performed by a project,

product, process or service to meet customer or business need.
Functional Manager Someone with management authority over an organizational unit within a
functional organization. The manager of any group that actually makes a
product or performs a service.
Sometimes called a Line Manager.
Functional A hierarchical organization where each employee has one clear superior,
Organization staff are grouped by areas of specialization and managed by a person with
expertise in that area.
Funds A supply of money immediately available.
Gantt Chart See Bar Chart
General Contractor A Contractor who does not specialize in one kind of work. Often used to
refer to the major Contractor who employs specialty subcontractors.
Goods Commodities, wares, merchandise.
Governance “Governance of project management concerns those areas of corporate

governance that are specifically related to project activities. Effective
governance of project management ensures that an organization’s Projects
Portfolio is aligned to the organization’s objectives, is delivered efficiently
and is sustainable.”
[APM Body of Knowledge; Association for Project Management, UK]
Hazard Analysis A review of all the safety hazards that may be encountered in a project.
Used to develop the safety and environmental plans. Also used to
undertake safety and environmental risk analyses.
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Term Definition
Health, Safety & This is an integral part of all projects and sets out the HSE policies and
Environment Plan procedures for the specific project in relation to the corporate policy.
Historical Documents and data on prior projects including project files, records,
Information correspondence, closed contracts and closed projects.
Hold Point It is a verification time which work cannot proceed beyond without an
approval or confirmation by a designated/authorized person.
Imposed Date A fixed date imposed on a schedule activity or schedule milestone, usually
in the form of a “start no earlier than” and “finish no later than” dat.
Inductions Similar to tool box meetings but used to convey specific job site practices
or other pertinent issues to the field supervisors and workers.
Information Meaningful data.
Information The process of making needed information available to project

Distribution stakeholders in a timely manner.
Infrastructure System of facilities, equipment and services needed for the operation of an
organization.
Initiating Processes Those processes performed to authorize and define the scope of a new
phase or project or that can result in the continuation of halted project work.
A large number of the initiating processes are typically done outside the
project’s scope of control by the organization, program or portfolio
processes and those processes provide input to the project’s initiating
processes group.
Initiator A person or organization that has both the ability and authority to start a
project.
Input Any item, whether internal or external to the project that is required by a
process before that process proceeds. May be an output from a
predecessor process.
Inspection Examining or measuring to verify whether an activity, component, product,

result or service conforms to specified requirements.
Conformity evaluation by observation and judgement accompanied as
appropriate by measurement, testing or gauging.
Integrated Interrelated, interconnected, interlocked, or meshed components blended

and unified into a functioning or unified whole.
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Term Definition
Internal Audit Undertaken by suitably qualified staff within the organization using a
systematic methodology for analyzing business processes, procedures and
activities with the goal of highlighting organizational problems and
recommending solutions.
ISO International Organization for Standardization.
Issue A point or matter in question or in dispute, or a point or matter that is not

settled and is under discussion or over which there are opposing views or
disagreements.
Job Description A description of the responsibilities and authorities of an employee.
Joint Venture A partnership of two or more engineering, construction, manufacturing,

trading, or investing companies often of limited duration.
Joint Working Group It is an official committee comprised of representatives from:

(CAPEX Panel)
● National Project Management Office (Mashroat) in EXPRO
● Centre of Spending Efficiency (CSE) in EXPRO
● National Center for Privatization (NCP)
● Ministry of Finance (MOF)
● National Debt Management Center (NDMC) in MOF
● Ministry of Environment, Water and Agriculture (MEWA)
● Water Production Sector in MEWA
● Distribution Sector in MEWA
● Irrigation and TSE Sector in MEWA
Key Performance These are a measure (benchmark, target) of performance and are used to
Indicators (KPI) evaluate how successful an organization or project is in attaining its
objectives.
Knowledge Knowing something with the familiarity gained through experience,

education, observation or investigation, it is understanding a process,
practice or technique or how to use a tool.
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Term Definition
Lag A modification of a logical relationship that directs a delay in the successor

activity. For example, in a finish-to-start dependency with a ten-day lag, the
successor activity cannot start until ten days after the predecessor activity
has finished. See also Lead
Late Finish Date In the critical path method, the latest possible point in time that a schedule
(LF) activity may be completed based upon the schedule network logic, the
project completion date, and any constraints assigned to the schedule
activities without violating a schedule constraint or delaying the project
completion date. The late finish dates are determined during the backward
pass calculation of the project schedule network.
Late Start Date (LS) In the critical path method, the latest possible point in time that a schedule
activity may begin based upon the schedule network logic, the project
completion date, and any constraints assigned to the schedule activities
without violating a schedule constraint or delaying the project completion
date. The late start dates are determined during the backward pass
calculation of the project schedule network.
Lead A modification of a logical relationship that allows an acceleration of the

successor activity. For example, in a finish- to-start dependency with a ten-
day lead, the successor activity can start ten days before the predecessor
activity has finished. See also Lag. A negative lead is equivalent to a
positive lag.
Lessons Learned The learning gained from the process of performing the project. Lessons
learned may be identified at any point. Also considered a project record, to
be included in the lessons learned knowledge base.
Level of Effort (LOE) Support-type activity (e.g. seller or customer liaison, project cost
accounting, project management, etc.) which does not produce definite end
products. It is generally characterized by a uniform rate of work
performance over a period of time determined by the activities supported.
Level of Risk Magnitude of a risk, or combination of risks, expressed in terms of the

combination of consequences and their likelihood.
Log A document used to record and describe or denote selected items identified
during execution of a process or activity.
Usually used with a modifier, such as issue, quality control, action, or
defect.
Logical Relationship A dependency between two project schedule activities, or between a

project schedule activity and a schedule milestone. See also Precedence
Relationship. The four possible types of logical relationship are: Finish-to-
Start; Finish-to-Finish; Start- to-Start; and Start-to-Finish.
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Term Definition
Manage Project The process of tracking team member performance, providing feedback,
team resolving issues, and coordinating changes to enhance project
performance.
Manage The process of managing communications to satisfy the requirements of,

Stakeholders and resolve issues with, project stakeholders.
Management Coordinated activities to direct and control an organization.
Mashroat See National Project Management Organization (Mashroat)
Mashroat Projects The Mashroat Projects White Book (MPWB) is a publishment by the
White Book (MPWB) National Project Management Organization (Mashroat) to standardize
operating structures, systems, processes and procedures across all
Government Entities.
It consists of 16 volumes. Each volume contains a general procedure, and
may contain other procedures, guidelines, checklists, templates, indicators
to measure compliance and appropriate tools to be employed.
The Mashroat Projects White Book covers all phases of a typical project’s
lifecycle and will remain a living document updated periodically to reflect
technical and operational advancements and lessons learned.
Every Entity shall use the Mashroat Projects White Book as the basis for
developing the Entity’s own documents (Procedures, Templates,
Checklists, etc.) which will constitute the Entity’s own self-standing, self-
contained and comprehensive project management system for managing
its own type of projects.
The Mashroat Projects White Book defines the minimum requirements to
be followed in the planning, execution and delivery of projects.
Master Schedule A level 1 summary schedule that introduces all portfolio projects in one
schedule. It identifies, for portfolio projects, the major deliverables and work
breakdown structure components and key schedule milestones.
Materiel The aggregate of things used by an organization any undertaking, such as

equipment, apparatus, tools, machinery, gear, material, and supplies.
Matrix Organization Any organizational structure in which the project manager shares
responsibility with the functional managers for assigning priorities and for
directing the work of persons assigned to the project.
Measurement Set of interrelated and interacting elements necessary to achieve

Management metrological confirmation and continual control of measurement processes.
System
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Term Definition
Measurement Set of operations to determine the value of a quantity.

Process
Measuring Measuring instrument, software, measurement standard, reference

Equipment material or auxiliary apparatus or combination thereof necessary to realize
a measurement process.
Methodology A system of practices, techniques, procedures and rules used by those who
work in discipline.
MEWA Ministry of Environment, Water and Agriculture.
Milestone A significant point or event in the project. See also Schedule Milestone
MOF Ministry of Finance
MOI Ministry of Interior
MOMRA Ministry of Municipalities and Rural Affairs
Monitor Observe and/or determine the status to identify change from the
performance level required or expected (collect project performance data)
with respect to a plan, produce performance measures and report and
disseminate performance information.
Monitor and Control The process of monitoring and controlling the processes required to initiate,
Project Work plan, execute and close a project to meet the performance objectives
defined in the Project Management Plan and project scope statement.
Monitoring and Those processes performed to measure and monitor project execution so
Controlling Process that corrective action can be taken when necessary to control the execution
of the phase or project.
Monte Carlo A technique that computes, or iterates, the project cost or project schedule
Analysis many times using input values selected at random from probability
distributions of possible costs or durations, to calculate a distribution of
possible total project cost or completion dates.
National Project It is a governmental Agency that is a national projects, operation and

Management maintenance world-class management organization that is the enabling
Organization engine for National project delivery achieving the highest efficiency and
(Mashroat) effectiveness and the greatest sustainable impact on socio-economic
development.
In February 2021, it is merged with Centre for Spending Efficiency (CSE)
to constitute “Expenditure Efficiency & Projects Authority” (EXPRO)
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Term Definition
NCP National Centre for Privatization
NICP National Integrated Capex Program
NIISP National Integrated Infrastructure Strategy Plan
Non-Conformance A report detailing the failure to meet specifications and often recommending
Report (NCR) a method of correction.
Nonconformity Non-fulfillment of a requirement.
NTP National Transformation Program
NWC National Water Company
Objective Something toward which work is to be directed, a strategic position to be

attained, or a purpose to be achieved, a result to obtained, or a service to
be performed.
Objective Evidence Data supporting the existence or verity of something.
Objectives Hierarchy A hierarchy setting out the objectives in ranked order i.e. the need to be
(Ranked) delivered in respect to the NWC business case and related project.
Operations An organizational function performing the ongoing execution of activities

that produce the same product or provide a repetitive service, e.g.
production operations, accounting operations etc.
OPEX Operational costs, e.g. chemicals, electricity, labor.
Opportunity Opportunity. A risk that would have a positive effect on one or more
business or project objectives.
Organization A group of persons organized for some purpose or to perform some type of
work within an enterprise.
Group of people and facilities with an arrangement of responsibilities,
authorities and relationships.
Organization Chart A method for depicting interrelationships among a group of persons

working together toward a common objective.
Organization Arrangement of responsibilities, authorities and relationships between

Structure people.
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Term Definition
Organizational A hierarchically organized depiction of the project organization arranged as

Breakdown Structure to relate the work packages to the performing organizational units.
(OBS)
Original Duration The activity duration originally assigned to a schedule activity and not
(OD) updated as progress is reported on the activity.
Typically used for comparison with actual duration and remaining duration
when reporting schedule progress.
OSHA Occupational Safety and Health Administration
Output A product, result, or service generated by a process. May be an input to a

successor process.
Owner Project It is a document that generated by the NWC as a mandatory pre-design

Requirements (OPR) document that constitutes a basis for:
● Design Basis Report (DBR) preparation
● Project design
● Construction
● Works Acceptance
● Operation
It details requirements (in less technical terms) of the project and
expectations for how the project will be designed, executed, accepted and
operated.
For each requirement, OPR details the following (not limited to):
● Textual description of the requirement.
● Business/Project needs, opportunities, and objectives that
demanded this requirement.
● Measurability, testability and traceability.
● Priority.
● Acceptability to key stakeholders.
● Deliverable/s that shall provide the requirements.
● Tests and acceptance criteria.
P6 Oracle “Primavera P6” software for project scheduling. See “Primavera P6”.
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Term Definition
Paired Comparison Used to compare one Project Objective (Ranked) with another so that all
objectives are compared to identify the relative importance of each of them.
Can also be used to compare site / design options using relevant criteria
e.g. ranked objectives.
Pareto Chart A histogram, ordered by frequency of occurrence, that shows how many
results were generated by each identified cause.
Perform Quality The process of applying the planned, systematic quality activities (such as
Assurance (QA) audits or peer reviews) to ensure that the project employs all processes
needed to meet requirements.
Perform Quality The process of monitoring specific project results to determine whether
Control (QC) they comply with relevant quality standards and identifying ways to
eliminate causes of unsatisfactory performance.
Performance A set of activities to ensure that goals are consistently being met in an
Management effective and efficient manner and can be applied to an organization,
department, project, service or employees.
Performance An approved integrated scope-schedule-cost plan for the project work

Measurement against which project execution is compared to measure and manage
Baseline performance. Technical and quality parameters may also be included.
Performance The process of collecting and distributing performance information. This

Reporting includes status reporting, progress measurement and forecasting.
Performance Documents and presentations that provide organized and summarized

Reports work performance information, earned value management parameters and
calculations and analyses of project work progress and status. Common
formats for performance reports include bar charts, s-curves, histograms,
tables and project schedule network diagram showing current schedule
status.
Planning Package A work breakdown structure component below the control account with
known work content but without detailed schedule activities. See also
Control Account
Portfolio A collection of projects or programs and other work that are grouped
together to facilitate effective management of that work to meet strategic
business objectives. The projects or programs of the portfolio may not
necessarily be interdependent or directly related.
Portfolio The centralized management of one or more portfolios, which includes

Management identifying, prioritizing, authorizing, managing and controlling projects,
programs and other related work, to achieve specific strategic business
objectives.
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Term Definition
Preventive Action Documented direction to perform an activity that can reduce the probability
of occurrence of negative consequences associated with project risks.
Action to eliminate the cause of a potential nonconformity or other
undesirable potential situation.
Primavera P6 “Primavera P6” is a software solution for globally prioritizing, planning,

managing and executing projects, programs and portfolios.
P6 is an integrated Projects Portfolio management (PPM) solution
comprising role-specific functionality to satisfy each team member’s needs,
responsibilities and skills.
Probability and A common way to determine whether a risk is considered low, moderate or
Impact matrix high by combining the two dimensions of a risk: its probability of
occurrence, and its impact on objectives if it occurs.
Procedure A series of steps followed in a regular definitive order to accomplish

something.
Specified way to carry out an activity or a process.
Process A set of interrelated actions and activities performed to achieve a specified

set of results or services.
Set of interrelated or interacting activities which transforms inputs into
outputs.
Procurement The document that describes the procurement processes will be managed
Management Plan from developing procurement documentation through to contract closure.
Product An artifact that is produced, is quantifiable, and can be either an end item
in itself or a component item. Additional words for products are Materiel and
Goods. Contrast with Result and Service. See also Deliverable.
Result of a process.
Product Life Cycle A collection of generally sequential, non-overlapping product phases

whose name and number are determined by the manufacturing and control
needs of the organization. The last product life cycle phase for a product is
generally the product’s deterioration and death. Generally, a project life
cycle is contained within one or more product life cycles.
Product Scope The features and functions that characterize a product, service or result.
Program A group of related project activities managed in a coordinated way to obtain

benefits and control not available from managing them individually.
Programs may include elements of related work outside of the scope of the
discrete activities in the program.
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Term Definition
Program The centralized coordinated management of a program to achieve the

Management program’s strategic objectives and benefits.
Progress Curves A plot of a project’s progress shown in percent complete versus amount of
time. Used to display status and trends.
Progress Payments A method defined in the contract documents that specifies the payments to
be made which correspond directly to the seller’s monthly progress of work.
Progressive Continuously improving and detailing a plan as more detailed and specific
Elaboration information and more accurate estimates become available as the project
progresses, and thereby producing more accurate and complete plans that
result from the successive iterations of the planning process.
Project A temporary endeavor undertaken to create a unique product, service or

result.
Project Calendar A calendar of working days or shifts that establishes those dates on which
schedule activities are worked and nonworking days that determine those
dates on which schedule activities are idle. Typically defines holidays,
weekends and shift hours. See also Resource Calendar.
Project Charter A document issued by the project initiator or sponsor that formally
authorizes the existence of a project and provides the project manager with
the authority to apply organizational resources to project activities.
Project Initiation Launching a process that can result in the authorization and scope
definition of a new project.
Project Life Cycle A collection of generally sequential project phases whose name and
number are determined by the control needs of the organization or
organizations involved in the project. A life cycle can be documented with
a methodology.
Project Management The application of knowledge, skills, tools and techniques to project
(PM) activities to meet project requirements.
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Term Definition
Project Management It is a computer based system that comprised of number of software

Information System applications which are performing, interacting and integrating to help
(PMIS) perform organization project activities effectively and efficiently.
Based on identified authority levels, PMIS provides access to the
component applications for users to manage data.
Examples of PMIS component software applications:
- Scheduling applications.
- Cost Estimation application.
- Cost Controlling application.
- Work authorization systems.
- Configuration management systems.
- Information collection and distribution systems.
- Vendor qualification and tendering system.
- Organizational knowledge base.
- Automated key performance indicators (KPI) system.
- Resource management software.
- Web interfaces to other online automated systems.
Project Management An identified area of project management defined by its knowledge

Knowledge Area requirements and described in terms of its component processes,
practices, inputs, outputs, tools and techniques.
Project Management An organization or entity assigned various responsibilities related to the

Office (PMO) centralized and coordinated management of all NWC and MEWA projects
under its domain. The responsibilities of a PMO can range from providing
project management support functions to actually being responsible for the
direct management of a project.
Project Management A formal approved document that defines how the project is executed,
Plan monitored and controlled. It may be a summary or detailed and may be
composed of one or more subsidiary management plans and other
planning documents.
Project Management One of the 44 processes, unique to project management and described in
Process the PMBOK Guide.
Project Management A person certified as PMP® by the Project Management Institute (PMI®).
Professional
(PMP®)
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Term Definition
Project Management The aggregation of the processes, tools, techniques, methodologies,

System resources, and procedures to manage a project.
The system is documented in the Project Management Plan and its content
will vary depending upon:
● application area
● organizational influence
● complexity of the project
● availability of existing systems.
A project management system, which can be formal or informal, aids a
project manager in effectively guiding a project to completion.
Project Management The members of the project team who are directly involved in the project
Team management activities.
Project Manager The person assigned by the performing organization to achieve the project
(PM) objectives.
Project Organization A document that graphically depicts the project team members and their
Chart interrelationships for a specific project.
Project Phase A collection of logically related project activities usually culminating in the
completion of a major deliverable. Project phases are mainly completed
sequentially but can overlap in some project situations. Phases can be
subdivided into sub- phases and then components; this hierarchy, if the
project or portions of the project are divided into phases, is contained in the
work breakdown structure. A project phase is a component of a project life
cycle. A project phase is not a project management process group.
Project Schedule The planned dates for performing schedule activities and the planned dates
for meeting schedule milestones.
Project Schedule Any schematic display of the logical relationships among the project
Network Diagram schedule activities. Always drawn from left to right to reflect project work
chronology.
Project Scope The work that must be performed to deliver a project, service or result with
the specified features and functions.
Project Scope The document that describes how the project scope will be defined,
Management Plan developed and verified and how the work breakdown structure will be
created and defined, and that provides guidance on how the project scope
will be managed and controlled by the project management team. It is
contained as a section in the Project Management Plan. The project scope
management plan can be informal and broadly framed or formal and highly
detailed based on the needs of the project.
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Term Definition
Project Scope The narrative description of the project scope, including major deliverables,
Statement project objectives, assumptions, constraints and a statement of work, that
provides a documented basis for making future project decisions and for
confirming or developing a common understanding of project scope among
the stakeholders. The definition of the project scope – what needs to be
accomplished?
Project The engineering and architectural plans and written requirements for a
Specifications project. Similar to statement of work.
Project Team All the project team members, including the project management team, the
project manager and for some projects, the project sponsor.
Project Team A documented list of project team members, their project roles and
Directory communication information.
Project Team The persons who report either directly or indirectly to the project manager
Members and who are responsible for performing project work as a regular part of
their assigned duties.
Projectized Any organizational structure in which the project manager has full authority
Organization to assign priorities, apply resources, and direct the work of persons
assigned to the project.
Projects & Technical The department of NWC Headquarters, which is charged with providing
Services department governance over the Capital Programs.
Public Private An alternative procurement option involving the transfer of risk to the private
Partnership (PPP) sector, which may also provide private capital. The costs and benefits of
the approach will be compared to the Private Sector Comparator (PSC).
Qualification Process to demonstrate the ability to fulfil specified requirements.

Process
Qualitative Risk The process of prioritizing risks for subsequent further analysis or action by
Analysis assessing and combining their probability of occurrence and impact.
Quality The degree to which a set of inherent characteristics fulfills requirements.
Quality Assurance Part of quality management focused on providing confidence that quality
requirements will be fulfilled.
Quality Control Part of quality management focused on fulfilling quality requirements.
Quality Management Coordinated activities to direct and control an organization with regard to
quality.
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Term Definition
Quality Management The quality management plan describes how the project management team
Plan will implement the performing organization’s quality policy. The quality
management plan is a section of the Project Management Plan. The quality
management plan may be formal or informal, highly detailed, or broadly
framed, based on the requirements of the project.
Quality Management Management system to direct and control an organization with regard to
System quality.
Quality Plan A document specifies, procedures shall be performed, resources shall be

applied in these procedures, who shall perform these procedures and when
shall be performed.
Quality Planning The process of identifying which quality standards that are relevant to the
project and determining how to satisfy them.
Part of quality management focused on setting quality objectives and
specifying necessary operational processes and related resources to fulfil
the quality objectives.
Quantitative Risk The process of numerically analyzing the effect on overall project objectives
Analysis of identified risks.
RACI RACI matrix is model for Responsibility Assignment Matrix that describes
the participation by roles in performing activities/procedures for a project or
business process.
RACI is an acronym derived from the four key responsibilities most typically
used: responsible, accountable, consulted, and informed which define roles
and responsibilities in cross-functional or departmental projects and
processes.
There are a number of alternatives to the RACI model such as RASCI,
PARIS, PACSI and CAIRO.
Record Document stating results achieved or providing evidence of activities

performed.
Regulation Requirements imposed by a governmental body. These requirements can

establish product, process or service characteristics, including applicable
administrative provisions that have government-mandated compliance.
Release Permission to proceed to the next stage of a process.
Reliability The probability of a product performing its intended function under specific
conditions for a given period of time.
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Term Definition
Repair Action on a nonconforming product to make it acceptable for the intended

use.
Request for Typically, a communication used by a Contractor to request information or

Information (RFI) clarification from the designer, supervisor or owner.
Request for A type of procurement document used to request proposals from

Proposal (RFP) prospective sellers of products or services. In some application areas, it
may have a narrower or more specific meaning.
Requirement It is a condition or capability that is required to be present in a product,

service, or result to satisfy a need. The presence is enforced by an
agreement or a formal specification impose.
Requirements are categorized into:
● Business requirements such as fulfilling organization's policies.
● Project Requirements such as adopting specific standard.
● Solution Requirements which are of two types:
○ Functional: such as the water cooling unit in a water treatment
plant reduces water temperature to 30 degree or lower.
○ Non Functional: such as the plant service will not affect the
water treatment plant production.
● Stakeholder Requirements such as Safety of the project executing
team.
Requirements It is a document maps all project requirements Vs their validation aspects

Traceability Matrix for traceability purpose during whole project life cycle.
(RTM)
The purpose or RTM is to enable ensuring that all requirements, in the
approved OPR, are:
● adding business value by linking it to the business and project
objectives and needs.
● satisfactorily achieved to avoid missing any functionality at
commissioning process.
RTM provides a consistent basis for managing product scope changes.
Requirement attributes in the RTM include but not limited to a unique
identifier, a textual description of the requirement, the rationale for inclusion
(business/project needs, opportunities, or objectives), owner, source,
priority, version, WBS deliverable, product design, test cases, current
status and status date.
Residual Risk A risk that remains after risk responses have been implemented.
Risk remaining after risk treatment.
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Term Definition
Resource Skilled human resources (specific disciplines either individually or in crews

or teams), equipment, services, supplies, commodities, materiel, budgets
or funds.
Resource A hierarchical structure of resources by resource category and resource

Breakdown Structure type used in resource leveling schedules and to develop resource limited
(RBS) schedules and which may be used to identify and analyze project human
resource assignments.
Resource Calendar A calendar of working days and nonworking days that determines those
dates on which each specific resource is idle or can be active. Typically
defines resource specific holidays and resource availability periods. See
also Project Calendar
Resource Leveling Any form of schedule network analysis in which scheduling decisions (start
and finish dates) are driven by resource constraints (e.g. limited resource
availability or difficult to manage changes in resource availability levels).
Resource-Limited A project schedule whose schedule activity, scheduled start dates and
Schedule scheduled finish dates reflect expected resource availability. A resource-
limited schedule does not have any early or late start or finish dates. The
resource-limited schedule total float is determined by calculating the
difference between the critical path method late finish date and the
resource-limited scheduled finish date. Sometimes called resource-
constrained schedule. See also Resource Leveling
Responsibility A structure that relates the project organizational breakdown structure to

Assignment Matrix the work breakdown structure to help ensure that each component of the
(RAM) project’s scope of work is assigned to a responsible person/team.
Retention Period It is a document aspect which identifies the duration for which the
information should be maintained or retained regardless its format (i.e. hard
or soft).
Review Activity undertaken to determine the suitability, adequacy and effectiveness

of the subject matter to achieve established objectives.
Risk An uncertain event or condition that, if it occurs, has a positive or negative

impact on a business or project’s objectives.
Risk Acceptance A risk response planning technique that indicates that the project team has
decided not to change the Project Management Plan to deal with a risk or
is unable to identify any other suitable response strategy.
Risk Analysis Process to comprehend the nature of risk and to determine the level of risk.
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Term Definition
Risk Appetite It is the amount and type of risk that an organization is willing to pursue or
retain. (ISO Guide 73:2009 Risk Management)
Determining risk appetite in a risk management of an organization helps to
determine the amount of risk the organization (both):
● willing to “live” with.
● need to manage.
Risk appetite is concerned with multi risks at organization management
level (including financial and operational impacts) in order to innovate in
pursuing the organizational objectives. It is not concerned with individual
risks at program or project level.
Risk appetite is defined once at organization level by defined criteria based
on factors includes but not limited to:
1. Industry
2. Company culture
3. Competitors
4. Nature of the organizational objectives (e.g. how aggressive they are)
5. Financial strength and capabilities of the organization
Risk appetite is periodically revised (e.g. annually or semi-annually).
Risk Assessment Overall process of risk identification, risk analysis and risk evaluation.
Risk Attitude Organization's approach to assess and eventually pursue, retain, take or
turn away from risk.
Risk Avoidance A risk response planning technique for a threat that creates changes to the
Project Management Plan that are meant to either eliminate the risk or to
protect the project objectives from its impact. Generally, risk avoidance
involves relaxing the Schedule, cost, scope or quality objectives.
Risk Breakdown A hierarchically organized depiction of the identified project risks arranged
Structure (RBS) by risk category and subcategory that identifies the various areas and
causes of potential risks. The risk breakdown structure is often tailored to
specific project types.
Risk Category A group of potential causes of risk. Risk causes may be grouped into
categories such as technical, external, organizational, environmental or
project management. A category may include subcategories such as
technical maturity, weather or aggressive estimating. See also Risk
Breakdown Structure
Risk Criteria Terms of reference against which the significance of a risk is evaluated.
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Term Definition
Risk Database A repository that provides collection, maintenance and analysis of data
gathered and used in the risk management process.
Risk Evaluation Process of comparing the results of risk analysis with risk criteria to
determine whether the risk and/or its magnitude is acceptable or tolerable.
Risk Identification The process of determining which risks might affect the project and
documenting their characteristics.
Process of finding, recognizing and describing risks.
Risk Management Coordinated activities to direct and control an organization with regard to
risk.
Risk Management Set of components that provide the foundations and organizational
Framework arrangements for designing, implementing, monitoring, reviewing and
continually improving risk management throughout the organization.
Risk Management The document describing how project risk management will be structured
Plan and performed on the project. It is contained as a section in the Project
Management Plan. The risk management plan can be informal and broadly
framed or formal and highly detailed based on the needs of the project.
Information in the risk management plan varies by application area and
project size. The risk management plan is different from the risk register
that contains the list of project risks, the results of risk analysis and the risk
responses.
Scheme within the risk management framework specifying the approach,
the management components and resources to be applied to the
management of risk.
Risk Management The process of deciding how to approach, plan and execute risk
Planning management activities for a project.
Risk Management Statement of the overall intentions and direction of an organization related
Policy to risk management.
Risk Management Systematic application of management policies, procedures and practices

Process to the activities of communicating, consulting, establishing the context, and
identifying, analyzing, evaluating, treating, monitoring and reviewing risk.
Risk Mitigation A risk response planning technique associated with threats that seek to
reduce the probability of occurrence or impact of a risk to below an
acceptable threshold.
Risk Monitoring and The process of tracking identified risks, monitoring residual risks, identifying
Control new risks, executing risk response plans and evaluating their effectiveness
throughout the project lifecycle.
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Term Definition
Risk Owner Person or entity with the accountability and authority to manage a risk.
Risk Potential An early-stage assessment of the risk potential of the project.

Assessment (RPA)
Risk Profile Description of any set of risks.
Risk Register The document containing the results of the qualitative risk analysis,
quantitative risk analysis and risk response planning. The risk register
details all identified risks, including description, category, cause, probability
of occurring, impacts on objectives, proposed responses, owners and
current status. The risk register is a component of the Project Management
Plan.
Risk Response The process of developing options and actions to enhance opportunities
Planning and to reduce threats to project objectives.
Risk Source Element which alone or in combination has the intrinsic potential to give
rise to risk.
Risk Tolerance It is an organization’s or stakeholder’s readiness to bear the risk after risk
treatment in order to achieve its objectives. (ISO Guide 73:2009 Risk
Management)
When one or more issues (which were risks) take place, variations happen.
Risk tolerance reflects the acceptable variations in outcomes related to
specific performance measures linked to objectives that the organization
seeks to achieve when the outcomes are exposed to issues. If risks are
multiple, risk tolerance definition shall require studying all expected
scenarios that the multiple risks may take.
Risk tolerance to be identified during risk workshops.
Risk tolerance is concerned with individual risks at program or project level.
It is not concerned with multi risks at organization management level.
Risk Transference A risk response planning technique that shifts the impact of a threat to a
third party, together with ownership of the response.
Risk Treatment Process to modify risk.
Role A defined function to be performed by a member such as testing, filing,

inspecting, coding. The member can be of NWC HQ staff, NWC Clusters
staff, the project team, Design Consultant, Supervision Consultant or
Contractor.
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Term Definition
Rolling Wave A form of progressive elaboration planning where the work to be

Planning accomplished in the near term is planned in detail at a low level of the work
breakdown structure, while the work far in the future is planned at a
relatively high level of the work breakdown structure, but the detailed
planning of the work to be performed within another one or two periods in
the near future is done as work is being completed during the current
period.
Root Cause Analysis An analytical technique used to determine the basic underlying reason that
causes a variance or a defect or a risk. A root cause may underlie more
than one variance or defect or risk.
Schedule Activity A discrete scheduled component of work performed during the course of a
project. A schedule activity normally has an estimated duration, an
estimated cost and estimated resource requirements. Schedule activities
are connected to other schedule activities or schedule milestones with
logical relationships and are decomposed from work packages.
Schedule Shortening the project schedule duration without reducing the project
Compression scope. See also Crashing and Fast Tracking
Schedule Control The process of controlling changes to the project schedule.
Schedule The process of analyzing schedule activity sequences, schedule activity

Development durations, resource requirements and schedule constraints to create the
project schedule.
Schedule The document that establishes criteria and the activities for developing and
Management Plan controlling the project schedule. It is contained as a section in the Project
Management Plan. The schedule management plan may be formal or
informal, highly detailed or broadly framed based on the needs of the
project.
Schedule Milestone A significant event in the project schedule such as an event restraining
future work or marking the completion of a major deliverable. A schedule
milestone has zero duration.
Sometimes called a milestone activity. See also Milestone
Schedule Model A model used in conjunction with manual methods or project management
software to perform schedule network analysis to generate the project
schedule for use in managing the execution of a project. See also Project
Schedule
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Term Definition
Schedule Network The technique of identifying early and late start dates, as well as early and
Analysis late finish dates, for the uncompleted portions of project schedule activities.
See also Critical Path Method, Critical Chain Method, What-If Analysis, and
Resource Leveling.
Schedule A measure of schedule efficiency on a project. It is the ratio of earned value

Performance Index (EV) to planned value (PV). The SPI = EV divided by PV. An SPI equal to
(SPI) or greater than one indicates a favorable condition and a value of less than
one indicates an unfavorable condition. See also Earned Value
Management.
Schedule Variance A measure of schedule performance on a project. It is the algebraic

(SV) difference between earned value (EV) and the planned value (PV). SV =
EV minus PV. See also Earned Value Management.
Scheduled Finish The point in time that work was scheduled to finish on a schedule activity.
Date (SF) The scheduled finish date is normally within the range of dates delimited by
the early finish date and the late finish date. It may reflect resource leveling
of scarce resources. Sometimes called Planned Finish Date.
Scheduled Start The point in time that work was scheduled to start on a schedule activity.
Date (SS) The scheduled start date is normally within the range of dates delimited by
the early start date and late start date. It may reflect resource leveling of
scarce resources. Sometimes called Planned Start Date.
Scope The sum of drawing, specification and BoQ that describes the products,
services and results to be provided by a project.
Scope Control The process of controlling changes to the project scope.
Scope Creep Adding features and functionality (project scope) without addressing the
effects on Schedule, costs and resources or without customer approval.
Scope Definition The process of developing a detailed project scope statement as the basis
for future project decisions.
Scope of Work A narrative description of products, services or results to be supplied under

(SOW) the contract.
Scope Planning The process of creating a project scope management plan.
Scope Variation Any change to the project scope. A scope change almost always requires
an adjustment to the project cost or schedule.
Scope Verification The process of formalizing acceptance of the completed project

deliverables.
Scrap Action on a nonconforming product to preclude its originally intended use.
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Term Definition
S-Curve Graphic display of cumulative costs, labor hours, percentage of work or

other quantities, plotted against time. Used to depict planned value, earned
value and actual cost of project work. The name derives from the S-like
shape of the curve (flatter at the beginning and end, steeper in the middle)
produced on a project that starts slowly, accelerates, and then tails off.
Also, a term for the cumulative likelihood distribution that is a result of a
simulation, a tool of quantitative risk analysis.
Second Party A project partner external to the NWC organization that have direct contract
with NWC (i.e. Design Consultant, Supervision Consultant and Contractor).
Secondary Risk A risk that arises as a direct result of implementing a risk response.
Select Sellers The process of reviewing offers, choosing from among potential sellers and
negotiating a written contract with a seller.
Self-Performed Construction work that is performed by the major Contractor’s workforce.
Seller A provider or supplier of products, services or results to an organization.
Sensitivity Analysis Varying several constituents of a calculated study to see what the effect is.
Usually performed in connection with a feasibility study.
A quantitative risk analysis and modeling technique used to help determine
which risks have the most potential impact on the project. It examines the
extent to which the uncertainty of each project element affects the objective
being examined when all other elements are held at their baseline values.
The typical display of results is in the form of a tornado diagram.
Service Useful work performed that does not product a tangible product or result,
such as performing any of the business functions supporting production or
distribution. Contrast with product or result. See also Deliverable
Short List A list that is distilled from a larger group of proposers or bidders through
the use of a set of criteria.
Should-Cost An estimate of the cost of a product or service used to provide an

Estimate assessment of the reasonableness of a prospective seller’s proposed cost.
Simulation A simulation uses a project model that translates the uncertainties specified
at a detailed level into their potential impact on objectives that are
expressed at the level of the total project. Project simulations use computer
models and estimates of risk, usually expressed as a probability distribution
of possible costs or durations at a detailed work level and are typically
performed using Monte Carlo Analysis.
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Term Definition
Site Means the places where the Permanent Works are to be executed and to
which Plant and Materials are to be delivered as described in the
Specification, and any other places as may be specified in the Contract as
forming part of the Site.
Skill Ability to use knowledge, a developed aptitude and/or a capability to

effectively and readily execute or perform an activity.
Snag List The work items that are identified during a final inspection which need to
be completed.
Also, known as a Defects List or Punch List.
Sole Source A type of procurement where only one supplier is asked to bid. Often
required to obtain proprietary products.
Special Cause A source of variation that is not inherent in the system, is not predictable,
and is intermittent. It can be assigned to a defect in the system. On a control
chart, points beyond the control limits, or non-random patterns within the
control limits, indicate a special cause. Also referred to as Assignable
Cause. Contrast with Common Cause
Specification A document that specifies in a complete, precise, verifiable manner, the

requirements, design, behavior, or other characteristics of a system,
component, product, result or service and often, the procedures for
determining whether these provisions have been satisfied, e.g. requirement
specification, design specification, product specification and test
specification.
Document stating requirements.
Specification Limits The area, on either side of the centerline, or mean, of data plotted on a
control chart that meets the customer’s requirements for a product or
service. This area may be greater than or less than the area defined by the
control limits. See also Control Limits
Sponsor The person or group that provides the financial resources, in cash or in
kind, for the project.
Staffing Plan The document that describes when and how human resource requirements
will be met. It is contained as a section in the Project Management Plan.
The staffing plan can be informal and broadly framed, or formal and highly
detailed, based on the needs of the project. Information in the staffing plan
varies by application area and project size.
Stage Gate Review A systematic methodology to ensure the completion of all technical and
legal requirement for each project stage prior to proceed to the next stage
of the project lifecycle.
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Term Definition
Stakeholder Person or organization (e.g. customer, sponsor, performing organization,

or the public) that is actively involved in the project, or whose interests may
be positively or negatively affected by execution or completion of the
project. A stakeholder may also exert influence over the project and its
deliverables.
Person or organization that can affect, be affected by, or perceive
themselves to be affected by a decision or activity.
Stakeholder Analysis An analysis setting out the current and required position of the stakeholders
to a project.
Stakeholder Management of persons or organizations that are actively involved in the

Management capital program, or whose interests may be positively or negatively affected
by the execution or completion of the capital program. A stakeholder may
also exert influence over the capital program and its deliverables.
Stakeholder Map A map identifying the critical and non-critical stakeholders to a project.
Standard A document established by consensus and approved by a recognized body

that provides, for common and repeated use, rules, guidelines or
characteristics for activities or their results, aimed at the achievement of the
optimum degree of order in a given context.
Start Date A point in time associated with a schedule activity’s start, usually qualified
by one of the following: actual, planned, estimated, scheduled, early, late,
target, baseline or current.
Start-to-Finish (SF) The logical relationship where completion of the successor schedule
activity is dependent upon the initiation of the predecessor schedule
activity. See also Logical Relationship
Start-to-Start (SS) The logical relationship where initiation of the work of the successor
schedule activity is dependent upon the initiation of the predecessor
schedule activity. See also Logical Relationship
Statement of Work A narrative description of products, services, or results to be supplied.

(SOW)
Strategic A document that summarizes the project’s strategic context, mandate and
Assessment scope.
Strategic Outline The first business case of a Project prepared by NWC in support of a
Case (SOC) potential project.
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Term Definition
Strengths, This information gathering technique examines the project from the
Weaknesses, perspective of each project’s strengths, weaknesses, opportunities and
Opportunities and threats, to increase the breadth of the risks considered by risk
Threats (SWOT) management.
Analysis
Subcontractor A Contractor who is holding a contract:

with a main Contractor (referred to as a 1st tier subcontractor)
or
with a subcontractor to the main Contractor (2nd, 3rd, etc. tier subcontractor).
Subproject A smaller portion of the overall project created when a project is subdivided
into more manageable components or pieces. Subprojects are usually
represented in the work breakdown structure. A subproject can be referred
to as a project, managed as a project, and acquired from a seller. May be
referred to as a subnetwork in a project schedule network diagram.
Substantial A contract milestone that is achieved by the owner’s acceptance of the

Completion product constructed by the main Contractor. This milestone results in the
owner utilizing the product for its intended function and purpose, and in
generating a list of remaining items to be reworked, or of incidental items
that do not affect the owner’s use of the product to be completed.
It is the key criterion for initial handover process.
Successor Activity The schedule activity that follows a predecessor activity as determined by
their logical relationship.
Summary Activity A group of related schedule activities aggregated at some summary level
and displayed/reported as a single activity at the summary level. See also
Subproject and Subnetwork
Supervision Means the person appointed by the Cluster (Employer’s Representative) to

Consultant act as the Supervision Consultant for the purposes of the Contract and
named in the Particular Conditions, or other person appointed from time to
time by the Cluster. See also Engineer.
Supplier Organization or person that provides a product.
Task A term for work whose meaning and placement within a structured plan for
project work varies by the application area, industry and brand of project
management software.
Technical Expert Person who provides specific knowledge or expertise to the audit team.
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Term Definition
Technical A performance measurement technique that compares technical

Performance accomplishments during project execution to the Project Management
Measurement Plan’s schedule of planned technical achievements. It may use key
technical parameters of the product produced by the project as a quality
metric. The achieved metric values are part of the work performance
information.
Technique A defined systematic procedure employed by a human resource to perform

an activity to produce a product or result or deliver a service and that may
employ one or more tools.
Template A partially complete document in a predefined format that provides a

defined structure for collecting, organizing and presenting information and
data. Templates are often based upon documents created during prior
projects. Templates can reduce the effort needed to perform work and
increase the consistency of results.
Test Determination of one or more characteristics according to a procedure.
Testing & It is a list that specifically and clearly identifies all project deliverables that
Commissioning shall be commissioned such as systems, equipment or interfaces.
Items (T&C Items)
It is a key part in the T&C Plan.
Testing & It is a written protocol which defines procedures and expectations for tests
Commissioning conducted on equipment, systems and interfaces.
Method Statement
The document includes test prerequisites, test conditions, tools and
(T&CMS)
instruments to be used, schematics, acceptance criteria and safety risk
assessment.
Contractor is responsible for preparing the T&C Method Statement and
submitting it to NWC Project Manager for approval at the beginning of T&C
stage. NWC Project Manager and Supervision Consultant shall review and
approve the T&C Method Statement. T&C department and T&C Consultant
(if assigned) shall be consulted if required.
Contractor is responsible for inclusion of the following two T&C method
statements in the method statement that he prepares for the project. This
incorporation obligates that, the Contractor T&C Method Statement
includes T&C integration activities to integrate all project
systems/equipment/interfaces.
● Some equipment manufacturers/suppliers prepare a method
statement for their equipment functional testing and performance
testing. These method statements shall be submitted and approved
by NWC Project Manager and Supervision Consultant during the
equipment approval process.
● Some specialized work requires that its method statements be
prepared by a specialized T&C specialist (SME). Contractor is
responsible for providing this method statement from the SME.
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Term Definition
Testing & It is a project specific document that:

Commissioning plan
● developed to describe the activities that shall be performed during
(T&C Plan)
T&C stage.
● initiated by the design consultant at the beginning of the design
stage.
● submitted to NWC for approval after approval of both:
○ Basic Design Data (BDD).
○ Design Basis Report (DBR).
● Updated by the Contractor during mobilization period at construction
stage and submitted to NWC for approval.
The T&C Plan consists of the following:
● General Project Information:
○ Project overview by the followings such as Key project
information, Project life cycle stages, Project OPR (as
attachment) and Project DBR (as attachment).
● System Descriptions
○ Lists for all the systems and equipment covered applicable to
T&C process. The list shall indicate their location and quantity.
Project system and equipment that not applicable to T&C
process must be identified as well.
○ Description, applicable to T&C process, on how systems was
designed.
● Overview of the T&C Strategy
○ Strategy on how to carry the T&C Process from the pre-design
phase to the post-acceptance phase such as
Commissionability study, method statement production, O&M
template and contents, installation monitoring, etc.
○ Criteria for work validation and contractor compliance to
specification.
● T&C Schedule (Level 3)
○ T&C Schedule in-coordination to the Project Construction
Schedule.
○ Schedule shall provide information about dates, duration, T&C
manpower and systems/equipment/interfaces.
● T&C Organization:
○ List of T&C Committee members.
○ Hierarchical reporting diagram that indicates designation and
contact information of each individual.
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Term Definition
● Reporting procedure for progress, defects and corrections :
○ Timings of T&C report submission.
○ Expected defects correction duration in coordination with the
contractor.
● Approval Authority:
○ Identify the authority that shall approve the T&C report and T&C
certificate that prepared by the T&C Working Group.
● T&C checklist and templates:
○ Attach the checklists and test procedures that shall be used in
T&C process.
○ Attach any template that need to use in T&C process.
Third Party A project partner external to the NWC organization that have no direct
contract with NWC (i.e. third party lab).
Threat A risk that would have a negative effect on one or more business or project
objectives.
Three-Point An analytical technique that uses three cost or duration estimates to

Estimate represent the optimistic, most likely and pessimistic scenarios. This
technique is applied to improve the accuracy of the estimates of cost or
duration when the underlying activity or cost component is uncertain.
Threshold A cost, Schedule, quality, technical or resource value used as a parameter

and which may be included in product specifications. Crossing the
threshold should trigger some action, such as generating an exception
report.
Time for Completion Means the time for completing the Works or a Section (as the case may
be) as stated in the Particular Conditions, calculated from the date specified
in the Notice to Proceed.
Time-Scaled Any project schedule network diagram drawn is such a way that the
Schedule Network positioning and length of the schedule activity represents its duration.
Diagram Essentially, it is a bar chart that includes schedule network logic.
Tool Something tangible, such as a template or software program, used in

performing an activity to produce a product or result.
Tool Box Meetings A regular meeting of field supervisors and workers to review important work
issues; particularly those pertaining to safety. Tool box meetings are
usually restricted to a specific subject, for example, excavation, concrete
placing, or heavy lifts, etc.
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Term Definition
Top Management Person or group of people who directs and controls an organization at the
highest level.
Total Float (TF) The total amount of time that a schedule activity may be delayed from its
early start date without delaying the project finish date or violating a
schedule constraint. Calculated using the critical path method technique
and determining the difference between early finish dates and late finish
dates.
See also Free Float
Total Quality A common approach to implementing a quality improvement program

Management within an organization.
Traceability Ability to trace the history, application or location of that which is under
consideration.
Trades Workers in the various construction disciplines such as carpenters and

ironworkers.
Trend Analysis Analytical technique that uses mathematical models to forecast future
outcome based on historical results. It is a method of determining the
variance from a baseline of a budget, cost, schedule or scope parameter
by using prior progress reporting periods’ data and projecting how much
that parameter’s variance from baseline might be at some future point in
the project if no changes are made in executing the project.
Triggers Indications that a risk has occurred or is about to occur. Triggers may be
discovered in the risk identification process and watched in the risk
monitoring and control process.
Triggers are sometimes called risk symptoms or warning signs.
Triple Constraint A framework for evaluating competing demands. The triple constraint is
often depicted as a triangle where one of the sides or one of the corners
represents one of the parameters being managed by the project team.
User The person or organization that will use the project’s product or service.
See also Customer
Validation The technique of evaluating a component or product during or at the end

of a phase or project to ensure it complies with the specified requirements.
Contrast with Verification.
Confirmation, through the provision of objective evidence, that the
requirements for a specific intended use or application have been fulfilled.
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Term Definition
Value An expression of the relationship between function and resources where

function is measured by the reliable performance of the functional
requirements of the customer and resources are measured in the cost,
time, energy, space, materials, labor, etc. required to accomplish the
function. This relationship is expressed equivalently by the following
equations:
Value ≈ Function ÷ Cost
Value ≈ Function ÷ Resources
Value ≈ Performance ÷ Resources.
Value Analysis (VA) The application of the Value Methodology to an existing project, product, or
process to achieve value improvement.
Value Appetite Amount and type of value improvement opportunity that an organization is
willing to pursue or retain.
Value Attitude Organization’s approach to assess and eventually pursue, retain, take or
turn away from a value improvement opportunity.
Value Engineering The application of the Value Methodology to a planned or conceptual

(VE) project, product, or process to achieve value improvement.
It is a systematic structured method of investigation that uses trained and
multi-disciplined teams to analyze the functional requirements of a project
or a program for achieving the essential functions at the lowest total cost
(capital, operating and maintenance) over the project and product life time.
This approach results in:
● Performance optimization
● Cost optimization
Value Management The application of the value methodology by an organization to achieve

(VM) strategic value improvement.
It is comprised of:
1. Value Engineering (VE) which is a “pro-active” approach done
during the design development.
2. Value Analysis (VA) which is a “reactive” approach of reviewing a
partially completed or completed design to determine if it could be
improved to better meet the project constraints and objectives.
3. Constructability Analysis (CA) which uses construction knowledge
and experience to make the design more constructible.
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Term Definition
Value Methodology A systematic process used by a multidisciplinary team to improve the value
of a project, product, or process through the analysis of functions. The
(VM)
value methodology is applied during the three stages of a value study:
1. Pre-Workshop
2. Workshop (Using the Six-Phase VM Job Plan)
3. Post-Workshop.
Value Proposal A recommendation, resulting from the application of the VM Job Plan during
a value workshop, to increase the value of a project, product, or process so
as to improve function and/or decrease the resources required. It is a
deliverable of the Development Phase of the VM Job Plans.
Value Study The application of the three stages of the Value Methodology (pre-
workshop, workshop, and postworkshop) in a structured effort led by a
CVS® to improve the value of a project, product, or process.
Value Workshop The application of the six phases of the VM Job Plan (1. Information, 2.
Function Analysis, 3. Creativity, 4. Evaluation, 5. Development, and 6.
Presentation) to a project, product, or process by a multidisciplinary team
led or facilitated by a Certified Value Specialist.
Variance A quantifiable deviation, departure or divergence away from a known

baseline or expected value.
Variance Analysis A method for resolving the total variance in the set of scope, cost and
schedule variables into specific component variances that are associated
with defined factors affecting the scope, cost and schedule variables.
Variation Control The process of requesting, reviewing and approving all variation requests
and controlling changes to deliverables and organizational process assets.
Variation Order (VO) An instruction to implement a change to a one or more documents of the
project contract. It is controlled by a process where carefully reviewed,
evaluated and approved or rejected.
Variation Request A request to expand or reduce the project scope, modify policies,
processes, plans or procedures, modify costs or budgets, or revise
schedules. Requests for variations can be externally or internally initiated,
and legally or contractually mandated or optional. Only formally
documented requested variations are processed and only Approved
Variations are implemented.
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Term Definition
Verification The technique of evaluating a component or product at the end of a phase

or project to assure or confirm it satisfies the conditions imposed. Contrast
with Validation.
Confirmation, through the provision of objective evidence, that specified
requirements have been fulfilled.
Virtual Team A group of persons with shared objective who fulfill their roles with little or
no time spent meeting face to face. Various forms of technology are often
used to facilitate communication among team members. Virtual teams can
be comprised of persons separated by great distances.
Voice of the A planning technique used to provide products, services and results that
Customer truly reflect customer requirements by translating those customer
requirements into the appropriate technical requirements for each phase of
project product development.
Warrantee A written promise from an entity (such manufacturer, supplier, contractor,

third party, etc.) to repair or replace a product that develops a fault within a
particular period of time, or to do a part of work again if it is not satisfactory.
White Book (WB) See Mashroat Projects White Book (MPWB)
Whole Life Costing Includes all cost components incurred throughout the life of a project.
(WLC)
Work Authorization A permission and direction, typically written, to begin work on a specific
schedule activity or work package or control account. It is a method for
sanctioning project work to ensure that the work is done by the identified
organization at the right time and in the proper sequence.
Work Authorization A subsystem of the overall project management system. It is a collection of

System formal documented procedures that defines how project work will be
authorized (committed) to ensure that the work is done by the identified
organization, at the right time, and in the proper sequence. It includes the
steps, documents, tracking system, and defined approval levels needed to
issue work authorizations.
Work Breakdown A deliverable-oriented hierarchical decomposition of the work to be

Structure (WBS) executed by the project team to accomplish the project objectives and
create the required deliverables. It organizes and defines the total scope of
the project. Each descending level represents an increasingly detailed
definition of the project work. The items in the lowest level of WBS is known
as work packages.
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Term Definition
Work Breakdown An entry in the work breakdown structure that can be at any level.
Structure
Component
Work Breakdown A document that describes each component in the work breakdown
Structure Dictionary structure (WBS). For each WBS component, the WBS dictionary includes
a brief definition of the scope or statement of work, defined deliverables, a
list of associated activities and a list of milestones. Other information may
include, responsible organization, start and end dates, resources required,
an estimate of cost, charge number, contract information, quality
requirements and technical references to facilitate performance of the work.
Work Environment Set of conditions under which work is performed.
Work Item Term no longer in common usage. See Activity and Schedule Activity
Work Package A deliverable or project work component at the lowest level of each branch
of the work breakdown structure. The work package includes the schedule
activities and schedule milestones required to complete the work package
deliverable or project work component. See also Control Account
Work Performance The performance data collected from controlling processes, analyzed in
Information comparison with project management plan components, project
documents, and other work performance information.
Workaround A response to a negative risk that has occurred. Distinguished from

contingency plan in that a workaround is not planned in advance of the
occurrence of the risk event.
Working Group An informal group comprising members of different entities and regional
representation that performs a cross-sector integration check
Workshop A structured meeting which conducted by a group to exchange ideas to

address a specific topic/s.
Every workshop typically has:
● One or more topics to address.
● A facilitator to guide the workshop.
● A team to perform the workshop activities.
● A brainstorming session.
● An idea evaluation session.
● A report describes the preferred address for the workshop topic/s.
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Term Definition
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Section 3 - Project Lifecycle and Stage Gate Process
Section 3 - Project Lifecycle and Stage

Gate Process
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History Page

12/01
2022
● The section abbreviation been changed from “GEN” to “PLC”.

● The references of stage deliverables are updated.
Change ● Table “Project Status Indicators” is revised.
Description
● Flowcharts “The Stage Gate Process” and “Simplified Stage Gate Process
Flowchart” are enhanced.
● Gate Committee responsible members are revised.
06/02
2020
Abdullah M. Albani
This section is developed as an update to “Project Life Cycle” section in first version
the Project Management Manual (PMM) which developed by Faithful + Gould. The
● Updated as per Mashroat Project Life Cycle and Stage Gate procedure.
Change ● Adding Stage Gates description.
Description
● Adding Stage Gate process map.
● Adding simplified stage gate process map.
● Adding gate committee and responsibilities.
● Referring to Mashroat Stage Gate procedures, guidelines, register and forms.
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3 Project Lifecycle and Stage Gate Process

The subject of this particular section of the Project Management Manual (PMM) is Project Lifecycle and
Stage Gate Process.
3.1 Project Lifecycle
“Design-Bid-Build” projects shall follow the lifecycle illustrated in figure 3-1, which is developed by
Mashroat. It consists of eight stages:
1. Project Registration Stage.
2. Initial Planning Stage.
3. Tender for Design Stage.
4. Design Stage.
5. Tender for Construction Stage.
6. Construction Stage.
7. Testing & Commissioning Stage.
8. Handover and Closeout Stage.
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Figure 3-1 “Design-Bid-Build” Project Lifecycle
Five-Year Project Portfolio Plan

MoF Fund Approval
Stage 1
Project Registration
Stage Gate 1
Stage 2
Initial Planning
Stage Gate 2
Stage 3
Tender for Design
Stage Gate 3
Stage 4
Design
Stage Gate 4
Stage 5
Tender for Constructon
Stage Gate 5
Stage 6
Construction
Stage Gate 6
Stage 7
Testing and Commissioning
Stage Gate 7
Stage 8
Handover and Closout
Stage Gate 8
Operations and Maintenance
For “Design & Build” project (EPC Projects), the lifecycle, illustrated in figure 3-2, shall be followed.
It consists of six stages.
1. Project Registration Stage.
2. Initial Planning Stage.
3. Tender Stage.
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4. Design and Construction Stage.

5. Testing & Commissioning Stage.
6. Handover and Closeout Stage.
Only the following project can be tendered as Design & Build (EPC).
1. Water Treatment Plants projects.
2. Wastewater Treatment Plant projects.
3. Water Tank projects.
Figure 3-2 “Design & Build” Project Lifecycle
Five-Year Project Portfolio Plan

MoF Fund Approval
Stage 1
Project Registration
Stage Gate 1
Stage 2
Initial Planning
Stage Gate 2
Stage 3
Tender
Stage Gate 3
Stage 4
Design and Construction
Stage Gate 4
Stage 5
Testing and Commissioning
Stage Gate 5
Stage 6
Handover and Closout
Stage Gate 6
Operations and Maintenance
In some projects, the project may be subdivided into parts. And each part is subdivided into stages.
In this case, the stage gate processes should be repeated for each . A suitable life cycle is to be
developed and agreed upon.
For details of the stage gate reviews to be carried out at the end of each stage, please refer to the
manual Section 6 “Governance”.
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The period from the beginning of Registration Stage up to the end of:
● Tender for Construction stage in design-bid-build projects.
or
● Tender for Design and Construction stage in Design & Build projects
is known as development period.
Also, the:
● Construction stage in design-bid-build projects.
● Design and Construction stage in Design & Build projects.
is known as the execution period.
The NWC Five-Year Projects Portfolio Plan is focused, each financial year, into a CAPEX plan. The
CAPEX plan is to be submitted to the Ministry of Environment, Water and Agriculture MEWA and
the Ministry of Finance MOF, in order to obtain ministerial approval and to secure budgetary funding
on an annual basis. During this process, the asset requirements are described in terms of project
requirements, in order to deliver the intended asset at the right time, cost and quality.
As per the initial project business case which developed during the preparation of NWC Five-Year
Projects Portfolio Plan, the project owner is required to prove that the potential project represents
the best way of meeting a defined need.
3.1.1 Stage 1: Project Registration
The objective of this stage is to register the MOF approved projects, in Expenditure Efficiency
& Projects Authority (EXPRO). For registration, a New Project Registration Form (PMF-003-
PLC-001 NPMO New Project Registration Form) is to be completed and submitted to NPMO
along with key supporting evidence (PMF-003-PLC-002 Project Registration Checklist). NWC
Five-Year Strategy Plan will act as the key source for information required as supporting
evidence.
Once project is assessed and registered with the NPMO, an official NPMO Project No. will be
obtained.
The following deliverables are required to this stage:
● Scope of Work Outline (PMM-004-FYP-010-040)
● Level 1 Schedule (PMM-004-FYP-020-040)
● Class 5 Cost Estimate (PMM-004-FYP-020-020)
● Risk Potential Assessment (PMM-004-FYP-030-020)
● Business Case (PMM-004-FYP-030-040)
● MOF approval to initiate project (PMM-004-FYP-060-010)
● NPMO Project Registration Form
3.1.2 Stage 2: Initial Planning
In the Initial Planning stage, NWC sets up the Project Team under an appointed Project
Manager, to define the project’s objectives, to outline possible design options and to select the
most suitable option through risk assessment and value analysis, to:
● Establish the execution strategy for the selected design option.
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● Establish the optimal Project Procurement Strategy.

● Establish the commissioning targets, to manage risks from an early stage.
● Develop a properly integrated Project Management Plan.
The objective of this stage is to further plan, develop, test and refine the initial project
parameters established during the Five-Year Strategic Planning phase. This will help ensuring
a reduction in potential risks related to planning and design.
● Land Acquisition Strategy (PMM-007-INT-020-010)
● Land Acquisition (PMM-016-PRO-025)
● Stakeholder Engagement Plan (PMM-007-INT-020-010)
● Conceptual Design (10% Design Package) (Master planning output)
● Environmental Impact Assessment (PMM-017-HSE-010-030)
● Project Procurement Strategy (PMM-016-PRO-020-010)
● Permitting Plan (PMM-007-INT-020-010)
● Updated Level 1 Project Schedule (PMM-010-SCH-010-040)
● Updated Risk Assessment/Register (All Risk Management Section)
● 30% Design Package for EPC Projects (PMM-008-SCO-030-023)
● Class 3 Cost Estimate (for EPC Projects) (PMM-004-FYP-030-040)
● Project Management Plan (PMM-007-INT-020-020)
3.1.3 Stage 3: Tender for Design
The Tender for Design stage prepares the project for engagement of the Design Consultant,
through technical and commercial inputs to the tender document, prequalification, evaluation
and selection.
The objective of this stage is to select an appropriately qualified engineering firm to complete
the project design. This selectin is based on Project Procurement Strategy which developed in
stage 2.
● Design Consultant Pre-qualifications (Supply Chain)
● Detailed Design Scope of Work (RFP) (PMM-016-PRO-030-010)
● Approved Environmental Impact Assessment (PMM-017-HSE-010-030)
● Updated Level 1 Design Schedule (PMM-010-SCH-030-010)
● Updated Level 2 Design Schedule (PMM-010-SCH-020-030)
● Updated Class 4 Cost Estimate for Design-Bid-Build projects (PMM-011-COS-030-010)
● Tender for Design Document (PMM-016-PRO-030-010)
● Bid Evaluation Plan (Supply Chain)
● Design Consultant Selection (PMM-016-PRO-040-050)
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● Design Consultant Document Deliverables List (PMM-016-PRO-030-010)

● Design Contract (Supply Chain)
3.1.4 Stage 4: Design
In the Design stage, NWC ensures design is being efficiently delivered with predictability of
schedule, cost and quality. The detailed design may be carried out by a specialist Design
Consultant or by the main Contractor, depending upon the Project Procurement Strategy
established earlier in the Initial Planning stage.
The objective of this stage is that the selected Design Consultant completes the necessary
design work for the project.
● Design Level 3 Schedule (PMM-010-SCH-030-020)
● Design Management Plan (PMM-007-INT-020-050)
● 30% Design Package (PMM-008-SCO-030-040)
● Constructability Review (PMM-019-CLA-020-030)
● Value Engineering Review (PMM-009-VEN-020)
● Class 3 Cost Estimate (PMM-011-COS-040-020)
● O&M Design Review (PMM-008-SCO-030-050)
● Class 2 Cost Estimate (PMM-011-COS-040-030)
● Issued for Construction (IFC) Design (PMM-008-SCO-030-070)
● Scope of Work for Construction Tender (PMM-016-PRO-030-010)
● Independent Related Studies (if any)
● Stakeholder Approvals (PMM-008-SCO-030-060)
● Design Lessons Learned (PMM-007-INT-040-020)
3.1.5 Stage 5: Tender for Construction
The objective of this stage is to select an appropriately qualified Contractor to construct the
project.
● Construction Scope of Work (RFP) (PMM-016-PRO-030-010)
● Contractor Deliverables List (PMM-016-PRO-030-010)
● Updated Level 1 Construction Schedule (PMM-010-SCH-040-010)
● Updated Class 2 Cost Estimate (PMM-011-COS-050-010)
● Updated Risk Assessment /Register (All Risk Management Section)
● Updated Project Management Plan (PMM-007-INT-020-020)
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● Contractor Pre-Qualifications (Supply Chain)

● Tender Package (Supply Chain)
● Bid Evaluation Plan (Supply Chain)
● Pre-tender, Site Visit and Job Explanation Meeting (PMM-016-PRO-040-006)
● Tender Queries and Responses (PMM-016-PRO-030-060)
● Level 2 Construction Schedule (PMM-010-SCH-020-030)
● Tender Technical Evaluation Records (PMM-016-PRO-040-020) and (PMM-016-PRO-
040-030)
● Contract Award Recommendation (PMM-016-PRO-040-050)
● Fund Assigning to Contractor (Supply Chain)
● Site Access Granted (General Services)
● Construction Contract (Supply Chain)
3.1.6 Stage 6: Construction
The objective of this stage is to ensure the satisfactory and safe construction of the assets by
the Contractor within the scope, Schedule, cost and quality targets set in the previous stages
by the selected Contractor.
● Level 3 Construction Schedule (PMM-010-SCH-040-020)
● Construction Management Plan (PMM-007-INT-020-080)
● Construction Quality Management Plan (PMM-012-QUA-010-080)
● Revised BOQ (PMM-011-COS-060-010)
● Updated Risk Assessment /Register (All Risk Management Section)
● Progress Reports (PMM-014-COM-130-020)
● Equipment Factory Acceptance Test Certificates (PMM-012-QUA-030-050)
● Variation Orders (PMM-007-INT-060-060)
● Closed Quality/HSE/Management NCRs (PMM-014-COM-100-080)
● Inspection Reports (PMM-012-QUA-030-050)
● As-Built Drawings (PMM-011-COS-060-030)
● Construction Lessons Learned (PMM-007-INT-040-030)
3.1.7 Stage 7: Testing & Commissioning
The Testing & Commissioning stage may be included inside the construction stage and
construction stage gate review.
NWC’s objectives in the Testing & Commissioning stage include agreeing to:
● handover plan and schedule.
● acceptance criteria, including the provision of acceptable as-built information.
● Testing & Commissioning arrangements.
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● the instructions for future operation and maintenance.

● O&M Training Plan (if applicable)
● Testing & Commissioning Records (PMM-008-SCO-060-010)
● Updated Risk Register (All Risk Management Section)
● O&M Manuals (PMM-008-SCO-060-010)
● Spares Parts List (PMM-008-SCO-060-010)
● Initial Acceptance and Handover Request from the Contractor (PMM-008-SCO-060-
010)
3.1.8 Stage 8: Handover & Closeout
The objective of this stage is that the project is handed over to operation and the project is
formally closed out.
● Warranty Documents (As per contractual requirements) (PMM-008-SCO-060-040)
● As built and GIS drawings (PMM-008-SCO-060-010)
● Initial Acceptance and Handover Certificate (PMM-008-SCO-060-050)
● Snag List Items Clearance (PMM-008-SCO-060-060)
● Final Payment Certificates (PMM-011-COS-070-020)
● Final Actual Cost (PMM-011-COS-070-020)
● Project Documents Package Handover to NWC (PMM-008-SCO-060-040) and (PMM-
008-SCO-070-043)
● Final Safety Incident Records (PMM-008-SCO-060-010)
● Resolution of Commercial Items (PMM-007-INT-070-020) and (PMM-016-PRO-100-
010)
● Final Acceptance Certificate (PMM-008-SCO-070-070)
● Contractor(s) Clearance Certificate(s) (PMM-008-SCO-070-010)
● Lessons Learned (PMM-007-INT-040-030)
● Project Closure Notice (PMM-007-INT-070-040)
● Contractor Evaluation Records (PMM-007-INT-070-020)
● Assets information as per Assets Registration Manual template (PMM-008-SCO-060-
010)
Operation and Maintenance is not a project management process. It is a continuous business
process undertaken to use the built assets in their intended manner and to review the degree
to which the original asset needs, and strategic business objectives have been met.
In addition to lifecycle stage, a project has a unique status description, tabulated below.
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Table 3-1 Project Status Indicators
Project Status Description
Under Initial Handing This status means the initial handing over process is not
Over completed.
Initially Handed Over This status means the initial handing over process is completed.
Finally Handed Over This status means the final handing over process is completed.
Closed This status means that the entire project has been completed.
Cancelled This status indicates that a decision has been made to terminate
the project.
Suspended This status indicates that a decision has been made to suspend the
project.
Withdrawn This status indicates that the project is withdrawn from the
Contractor.
Troubled This status indicates that one or more of the following is true:
● the variance between planned and actual progress is more than
25%.
● the project time overrun is more than 25%.
● there is no approved schedule after 60 days from site handover
to Contractor.
Delayed This status indicates that 10% < variance between planned and
actual progress ≤ 25%.
On Time This status indicates that the variance between planned and actual
progress ≤ 10%.
Ahead of Schedule This status indicates that the actual progress exceeds the planned
progress.
3.2 Stage Gate Review Process

The Stage Gate process, which shall be implemented by “PMM-006-GOV-180 Stage Gate Review”,
is a comprehensive and systematic project delivery methodology to be performed at the end of
each stage to allow the project’s stakeholders to make a responsible decision on the project’s
advancement to the next stage of the project. The Stage Gate process contains a list of critical
deliverables that must be completed.
Cluster Asset Management & Operation Excellence department shall participate in gate review
processes for stages Design, Construction, Testing & Commissioning and Handover & Closeout.
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3.2.1 Stage Gate Review Types

The Project Stage Gate Process is mandatory for all projects. Project fulfill both following
criteria shall go through the Full Stage Gate Review Process at the end of each stage.
● Projects of value greater than or equal to SAR 25,000,000.
● Projects of one year or more duration.
Below flowchart describes the stage gate process.
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Figure 3-3 The Stage Gate Process Flowchart
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Projects which do not fulfill one or more of the above criteria (projects below SAR 25M and/or
of less than one year duration), shall go through a Simplified Stage Gate Process at the end of
each stage.
Below flowchart describes the simplified stage gate process.
Figure 3-4 Simplified Stage Gate Process Flowchart
3.2.2 Gate Committee

Stage Gate Process is performed by the team which illustrated in figure 3-5.
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Figure 3-5 Gate Committee
GATE COMMITEE
Represent the Functional Departments and internal stakeholders at the Stage Kick-off Meeting and
the Stage Gate Review Meeting
GATE KEEPER GATE COORDINATER FUNCTIONAL DEPARTMENT

REPRESENTATIVES
Approves or disapproves, the Coordinate the Stage Gate Complete the required
project’s progress to the next review process deliverables
stage
3.2.2.1 Gate Committee

Committee of stakeholders and subject matter experts from the Functional Departments
The role of the Gate Committee is to represent the Functional Departments and internal
stakeholders at the Stage Kick-off Meeting and the Stage Gate Review Meeting.
Gate committee typically consists of Gate Keeper, Gate Coordinator and Project level
Functional Department representatives.
3.2.2.2 Gate Keeper
The Business Unit Construction Director shall be the Gate Keeper who is responsible for
determining if the Stage Gate has been passed or not.
The role of the Gate Keeper is to approve, or disapprove, the project’s progress to the next
stage.
3.2.2.3 Gate Coordinator
The NWC Project Manager shall be the Gate Coordinator who is responsible for managing
the Stage Gate process.
The role of the Gate Coordinator is to coordinate the Stage Gate review process.
3.2.2.4 Functional Department Representatives
The functional departments within the Cluster are:
● Cluster Technical Services Department.
● Cluster Project Scheduling & Control Department.
● Cluster PMO Department.
● Cluster Asset Management & Operation Excellence Department.
3.3 Key Performance Indicators (KPIs)
The table below identifies the KPIs of Project Life Cycle and Stage Gate Process. The NWC Project
Manager is responsible to measure and report these KPIs at each KPI stated frequency. The current
status of each KPI is to be reflected in the monthly project progress report.
For further details refer to (PMF-006-GOV-015 KPI Report).
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Table 3-2 Project Life Cycle and Stage Gate Process KPIs
KPI Reporting Green Yellow Red

Detail Measurement
# Frequency Threshold Threshold Threshold
Year-to-date, has the

cluster launched a
Design and Build project as Design &
1 Quarterly No NA Yes
project type Build for projects other
than “WTPs”, “STPs”
and “Water Tanks”?
3.4 Attachments
The table below identifies mandated forms, templates and guidelines and for this section (PMM-
002-GEN Project Lifecycle and Stage Gate Process).
Table 3-3 Project Lifecycle and Stage Gate Process forms, templates and guidelines
Document No. Title
PMF-003-PLC-001 NPMO New Project Registration Form
PMF-003-PLC-002 Project Registration Check List
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Section 4 - Five-Year Projects Portfolio Planning
Section 4 - Five-Year Projects Portfolio

Planning
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History Page

12/01
2022
● The responsibilities in all process are revised and updated as per latest NWC
Organizational Structure.
● The process “PMM-004-FYP-010 Initiate Projects Portfolio s at Cluster Level” is
elaborated.
● The process “PMM-004-FYP-020 Develop and Confirm Initial Cluster Projects
Portfolios” is elaborated.
● The process “PMM-004-FYP-030 Screen NWC Initial Projects Portfolio” is
elaborated.
Change ● The process “PMM-004-FYP-040 Develop Draft FYPPP and Submit for Review” is
Description elaborated.
● The process “PMM-004-FYP-050 Update FYPPP and Prepare Annual Capital
Works Plan” is elaborated.
● The process “PMM-004-FYP-060 Develop Final FYPPP and Annual Capital Works
Plan and Submit to MOF for Budget Approval” is elaborated.
● The process “PMM-004-FYP-070 Five-Year Projects Portfolio Variation Control” is
added.
● Key Performance Indicators (KPIs) are revised.
● Number of attachments are added, revised or removed.
06/02
2020
Abdullah M. Albani
Change
● This is the first versions of this section.
Description
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4 Five-Year Projects Portfolio Planning

The subject of this particular section of the Project Management Manual (PMM) is Five-Year Projects
Portfolio Planning. This section standardizes processes for developing and approving NWC:
● Five-Year Projects Portfolio Planning Plan (FYPPP).
● Annual Capital Works Plan.
These two are developed and approved for the capital projects that to be performed by Capital Projects
& Technical Services Department (CP&TS).
Forward-looking Five-Year Projects Portfolio Plans will play an important role in helping clarify the
relationship between broader goals and objectives and NWC’s Five-Year Capital Budget Cap. They are
an important tool to assist NWC to identify, plan, assess and prioritize the progressive delivery of their
national infrastructure projects.
NWC shall adopt a strategic portfolio planning approach that culminates in the production of an Annual
Capital Works Plan for its projects withing the FYPPP. By undertaking annual, process driven, integrated
forward planning, NWC will be better equipped to identify the “right projects” for execution on best timing.
NWC shall prepare their Annual Capital Works Plan for submission to the MOF, for budget review and
approval.
The NWC Annual Capital Works Plan is to be developed prior to submitting to the MOF for budget
approval and prior to any project be permitted to start Project Registration stage.
The Five-Year Projects Portfolio Planning enables the following key benefits:
● Early alignment of NWC initiatives with broader strategic objectives such as 2030 Vision and
National Transformation Program (NTP).
● Improved understanding of the project complexities.
● Early identification of potential investment risks.
● Establishment of a Business Case to assist with project feasibility assessment.
● Preparation of more coordinated initiatives, with increased levels of inter-disciplinary and cross
sectoral consensus.
● Improved levels of project prioritization within an NWC’s portfolio of project.
● Improved alignment of annual NWC CAPEX with MOF budgets.
The roadmap the used in preparing the Five-Year Projects Portfolio Planning is illustrated below in
Figure 4-1.
The high-level process map for Five-Year Projects Portfolio Planning is illustrated next in Figure 4-2.
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Figure 4-1 Road Map for Five-Year Projects Portfolio Planning
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Figure 4-2 High-Level Process Map for Project Integration Management
4.1 PMM-004-FYP-010 Initiate Projects Portfolio at Cluster Level

4.1.1 Objective
The objective of this process is to initiate the initiate a Projects Portfolio at every cluster. Every
cluster initial Projects Portfolio shall be developed based on defined strategic objectives. It shall
establish infrastructure supply and demand and identify potential projects (initiatives).
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4.1.2 Policies
Policies for this process are as follows:
1. MOF shall provide NWC with a medium-term Capital Works Budget Cap, for the
forthcoming Five-Year. This cap will help guide the early identification of potential
projects, their screening, cross-sectoral integration and prioritization.
2. Every cluster must have its own Projects Portfolio .
4.1.3 Flowchart
Figure 4-3 PMM-004-FYP-010 Initiate Projects Portfolio s at Cluster Level Flowchart
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4.1.4 Procedures
4.1.4.1 PMM-004-FYP-010-010 Identify Capital Projects & Technical Services
Objectives
Procedure: ● Review existing NWC policy framework and strategic objectives.

● Develop a set of objectives for Capital Projects & Technical Services
department. Strategic Goals should:
○ completely be in line with NWC strategic objectives.
○ be “SMART” objectives (i.e. be Specific, Measurable, Achievable,
Relevant and Time related).
○ clearly state what the Capital Projects & Technical Services
department intends to do to achieve the set strategic objectives.
● References to be reviewed by NWC include but not limited to:
○ Existing Royal Directives.
○ The National Water Strategy.
○ The KSA VISION 2030 - National Economic and Development
Goals and Objectives.
○ The National Transformation Program (NTP).
○ Other Vision Realization Programs and Initiatives.
○ The Current KSA Development Plans.
○ Existing NWC Strategy/Policies/Initiatives/Plans.
Capital Projects & Technical Services VP
Roles: Responsible:
Capital Projects Strategic Planning GM
Scheduling & Control GM
PMO GM
Technical Services GM
Environmental Compliance & Wastewater Services GM
Strategic Partnerships Management GM
Accountable: Capital Projects & Technical Services VP
Chief Financial Officer
Consulted:
Transformation & Governance VP
Shared Services VP
Strategy, Corporate Performance & Systems VP
Privatization VP
Customer Care VP
Business Operational Support VP
Cluster Projects GMs
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CEO
Informed:
Transformation & Governance VP
Shared Services VP
Strategy, Corporate Performance & Systems VP
Privatization VP
Customer Care VP
Business Operational Support VP
4.1.4.2 PMM-004-FYP-010-020 Identify Infrastructure Gap and Prepare Local Master
Plans
Procedure: ● The Local Master Plan Consultants shall identify the demand for
infrastructure by many factors including changes in population,
demographics, levels of urbanization, urban residential densities and by
changes in the type and range of services to be provided.
● The Local Master Plan Consultants shall assess and confirm
infrastructure gap within each of the six Clusters. The following should
be considered:
○ Establish Baseline: Confirm the present baseline. This is the level of
infrastructure recorded within the year prior to this annual Capital
Works Plan.
○ Generate Infrastructure Forecast: Generate the projected future
infrastructure forecast, for a minimum 10-year horizon, based on the
anticipated rates of development growth / change. This forecast
should be under-pinned and supported by up-to-date statistics and
data, including established population growth projections.
○ Establish Infrastructure Gap: Establish the gap for infrastructure, by
assessing the difference between the baseline and the forecast
generated.
○ Identify Potential Projects: To address the confirmed infrastructure
gap (per Cluster), potential projects shall be identified and listed.
● Request all relevant stakeholders including Cluster Asset Management
& Operation Excellence to communicate their needs.
● Transfer stakeholder needs into projects requirements.
● Rate the Relative Importance of Projects Requirements.
● Achieve consensus on the project requirements and approach by the
project stakeholders including Cluster Asset Management & Operation
Excellence .
● The local master plan Consultant shall develop and submit the local
master plan with the list of projects for NWC review and approval.
Roles: Responsible: Local Master Plan Consultant
Accountable: Cluster Strategic Planning Manager
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Cluster Projects GM’s

Consulted:
Cluster Asset Management & Operation Excellence
Director
Cluster Strategic Planning Manager
National Master Plan Consultant
Cluster Projects GM’s
Informed:
Director
Operation Excellence GM
Asset Management GM
4.1.4.3 PMM-004-FYP-010-040 Establish Initial Project Scope and Identify Potential
Site Location Options
Procedure: ● Local Master Plan Consultant shall develop, for every potential project
(initiative), an initial project scope. The initial project scope should
include at least the following information:
○ A brief description of the proposed project and identification of its
anticipated outcome/s.
○ An outline of the project scope of work (PMF-004-FYP-003 Initial
Project Scope Outline Form) to assist in identifying and capturing
the key project information.
○ At least three “viable” site location options should be identified for
each project (i.e. the type of development should be compatible with
the surrounding existing or proposed land uses, accessible from
existing or proposed road networks, have access to the required
utilities and have limited impact on the existing natural environment).
The location options identified are to be appropriately assessed,
during (PMM-004-FYP-020-010 Undertake Pre-Concept Site
Options Testing).
Local Master Plan Consultant
Roles: Responsible:
Accountable: Cluster Projects GM
Engineering Director
Consulted:
Cluster Projects GM
Cluster Technical Services Director
Director
Cluster GIS Specialist
Informed:
Portfolios Strategic Planning & Spending Efficiency
Director
Strategic Studies Manager
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4.2 PMM-004-FYP-020 Develop and Confirm Initial Cluster Projects

Portfolios
4.2.1 Objective
The objective of this process is to develop and confirm cluster initial Projects Portfolio s. The
development includes undertaking site options testing, preparing initial cost estimates and
schedules.
4.2.2 Policies
1. Every Cluster is responsible to develop its own Local Master Plan.
2. The supply and demand analysis that performed in process PMM-004-FYP-010 shall
be the basis of:
i. The establishment of potential projects.
ii. The identification of three potential site location options for every project.
3. Every project must be identified at least three potential site location options. The
Preferred project site location shall be selected upon testing and assessment of site
options.
4. Confirmation of a preferred site option for every project be an input to:
i. Refining the initial project scope (established in process PMM-004-FYP-010)
ii. Developing the initial project level 1 schedule.
iii. Developing the initial project class 5 cost estimate.
5. Initial Projects Portfolio, including the identified location, class 5 cost and level 1
schedule, must be approved at cluster level before any further process.
6. Development of class 5 cost estimate requires at least the following:
i. For transmission line projects, identification of routs and lengths.
ii. For network projects, identification of served area.
iii. For water tank projects, identification of tank location and capacity.
iv. For STPs, identification of STP capacity, location, distance between the STP and
outfall or dumping lagoon.
v. Boosting stations, identification of capacity and station level.
vi. For water treatment plants, identification of plant capacity and location, targeted
water quality and treatment technology.
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4.2.3 Flowchart
Figure 4-4 PMM-004-FYP-020 Develop and Confirm Initial Cluster Projects Portfolios Flowchart
4.2.4 Procedures
4.2.4.1 PMM-004-FYP-020-010 Undertake Pre-Concept Site Options Testing
Procedure: ● For all projects in the LMP Projects List, each of the potential site location
options previously identified, shall be assessed for suitability against high
level, socio-economic and environmental criteria. These criteria could
include the level of vehicular access to / from the site, site topography
and geography, population demographics and acceptability of proposed
land use within the existing or planned context.
● Confirm the preferred site option and update the scope of work (i.e. if the
preferred site may require additional works to facilitate the development).
This should be added to the initial project scope using (PMF-004-FYP-
003 Initial Project Scope Outline Form).
Roles: Responsible:
Consulted:
Director
Cluster Value Engineering Specialist
Cluster GIS Specialist
Value Engineering Director
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Informed:
Cluster Scheduling Section Head
Cluster Cost Estimation Specialist
4.2.4.2 PMM-004-FYP-020-020 Prepare Initial Cost Estimate (Class 5)
Procedure: ● For all projects in the LMP Projects List, using the preferred site option
analysis and refined scope of work, the Local Master Plan Consultant
shall prepare Initial Cost Estimate (Class 5) for the proposed projects.
● For above action, refer to (PMF-011-COS-005 Cost Estimate Form) and
(PMF-011-COS-001 Cost Estimating Guidelines).
● Refer to the Cost Database for analogous data.
● Ensure that assumptions, issues and risks are formally recorded (e.g.
Risk Workshop No.1 Report should be reviewed) and attached to the
completed form.
● Send the prepared Cost Estimate (Class 5) to National Master Plan
Consultant for review and processing.

Consulted:
Cost Estimation Manager
Cluster Risk Section Head
Business Unit Construction Director
Informed:
Cluster Projects GM
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4.2.4.3 PMM-004-FYP-020-030 Approve Initial Cost Estimate (Class 5)
Procedure: ● For all projects in the LMP Projects List, Cluster Technical Services
Director, Cluster Cost Estimation Specialist and Strategic Planning
Manager shall review the Initial Cost Estimate (Class 5) provided by local
master plan Consultant.
● For above action, refer to (PMF-011-COS-005 Cost Estimate Form) and
(PMF-011-COS-001 Cost Estimating Guidelines).
● Refer to the Cost Database for analogous data.
completed form.
Roles: Responsible:
Consulted:
Director
Informed:
Cluster Projects GM
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4.2.4.4 PMM-004-FYP-020-040 Prepare Initial Project Schedule (Level 1)
Procedure: ● For all projects in the LMP Projects List, prepare initial level 1 schedule.
As a minimum, it should identify the following:
○ The total duration of the project.
○ Major project phases and high-level milestones such as completion
of initial planning and specialist technical studies, tender for design,
design, tender for construction, construction, testing &
commissioning and handover and closeout.
○ Identify major work packages / scope breakdown (Work Breakdown
Structure Level 1).
● Estimate the project duration based on the given data and previous
executed projects.
● Breakdown the overall project duration into stages, based on the
selected procurement strategy for the project and the associated
lifecycle.
● Identify the duration of project and its stages clearly in the NWC strategic
Master Plan of Projects using “Primavera P6”.
● Develop initial Project Level 1 Schedule.

Consulted:
Cluster Scheduling & Control Manager
Informed:
Cluster Projects GM
4.2.4.5 PMM-004-FYP-020-050 Approve Initial Project Schedule (Level 1)
Procedure: ● Cluster Scheduling & Control Manager, Cluster Scheduling Section Head
and Cluster Strategic Planning Manager shall review the initial level 1
schedule provided by local master plan Consultant.
completed form.
Roles: Responsible:
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Consulted:
Scheduling & Control Director
Director
Informed:
Cluster Projects GM
4.2.4.6 PMM-004-FYP-020-060 Develop Initial Business Case
Procedure: ● Develop Initial Business Case using (PMF-004-FYP-017 Initial Business

Case) for every identified project for the Cluster Local Master Plan.
● Utilize the developed outputs in developing the Initial Business Case
such as:
○ confirmed demands
○ Scope outline
○ Site locations identifying the confirmed one
○ Class 5 cost estimate
○ Level 1 schedule

Consulted:
Cluster Environmental Compliance Manager
Cluster PMO Manager
Cluster Projects GM
Informed:
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4.2.4.7 PMM-004-FYP-020-070 Approve Initial Business Case
Procedure: ● Cluster Technical Service Director and Cluster Strategic Planning

Manager shall review the Initial Business Cases.
● Cluster Technical Service Director shall give 1st approval on the Initial
Business Cases and raise them to the Cluster Projects GM for approval.
● Cluster Projects GM shall review approve the Initial Business Cases.
Roles: Responsible:
Cluster Projects GM
Consulted:
Cluster PMO Manager
Informed:
4.2.4.8 PMM-004-FYP-020-080 Develop Cluster Local Master Plan
Procedure: ● Perform every contractual activity and study that is essential to develop
the Local Master Plan (e.g. developing inception report, Master Plan
Guidelines, Bulk Water Development Plans, Water Leakage Study, etc.).
● Compile and consolidate the produced deliverables to create the Local
Master Plan.
● Raise the Local Master Plan to Capital Projects Strategic Planning GM
for approval.

Consulted:
Cluster Projects GM
Cluster PMO Manager
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Informed:
Cluster Projects GM
Cluster PMO Manager
4.2.4.9 PMM-004-FYP-020-090 Approve Cluster Local Master Plan at Cluster
Procedure: ● Cluster Technical Service Director and Cluster Strategic Planning

Manager shall review the local master plan and raise it to the Cluster
Projects GM for approval.
● Cluster Projects GM shall review and give 1st approval on the local
master plan and raise it to Cluster Senior GM for final approval.
● Cluster Senior GM, shall give 2nd approval on the local master plan and
transmit it to Capital Projects Strategic Planning GM for final approval.
Cluster Technical Service Director
Roles: Responsible:
Cluster Projects GM
Cluster Projects GM
Consulted:
Cluster Technical Service Director
Cluster PMO Manager
Director
Asset Management GM
Informed:
Cluster Projects GM
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4.2.4.10 PMM-004-FYP-020-100 Approve Cluster Local Master Plan at HQ
Procedure: ● Capital Projects Strategic Planning GM shall review the local master plan
in consultation with:
○ National Master Plan Consultant.
○ Strategic Studies Manager.
○ Portfolios Strategic Planning & Spending Efficiency Director.
○ Cluster Projects GM
● Capital Projects Strategic Planning GM shall give final approval on the
local master plan.
● Capital Projects Strategic Planning GM shall send the local master plans
to the National Master Planning Consultant for incorporation in the
National Maser Plan
Roles: Responsible: Capital Projects Strategic Planning GM

Cluster Projects GM
Consulted:
Director
Informed:
Cluster Senior GM
Cluster Projects GM
4.2.4.11 PMM-004-FYP-020-110 Develop National Master Plan
Procedure: ● Review the Local Master Plans that approved at cluster level.
● Perform every contractual activity or study that is essential to develop the
National Master Plan (e.g. developing inception report, Master Plan
Guidelines, Bulk Water Development Plans, Water Leakage Study, etc.).
● Compile, consolidate and integrate the Local Master Plans to create The
National Master Plan.
● Identify and address:
○ Interfaces between Local Master Plans.
○ incompatibilities between Local Master Plans.
○ overlapping aspects such as objectives or resources.
● Perform integration, from national wise, between Local Master Plans to
eliminate any potential issues in both National and Local Master Plans.
● Raise the National Master Plan to Capital Projects Strategic Planning
GM for approval.
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Roles: Responsible: National Master Plan Consultant
Accountable: Capital Projects Strategic Planning GM

Local Master Plan Consultants
Consulted:
Director
Director
PMO GM
Asset Management GM
Informed:
4.2.4.12 PMM-004-FYP-020-120 Approve National Master Plan
Procedure: ● Capital Projects Strategic Planning GM shall pass the National Master
Plan to Strategic Studies Manager and Portfolios Strategic Planning &
Spending Efficiency Director for review and initial approval.
● Strategic Studies Manager and Portfolios Strategic Planning & Spending
Efficiency Director shall review the National Master Plan and give initial
approval on it.
● Capital Projects Strategic Planning GM shall review the National Master
Plan and give final approval on it.
● Capital Projects Strategic Planning GM shall forward the approved
National Master Plan to all Cluster Senior GMs and Cluster Projects GMs
to adopt and formally make any required adjustments in Local Master
Plans.
Roles: Responsible:
Director
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Consulted:
PMO GM
Informed:
Cluster Senior GMs
4.2.4.13 PMM-004-FYP-020-130 Develop Cluster Initial Projects Portfolio
Procedure: ● Review the proposed projects in approved Local Master Plans against
the NWC’s medium-term Capital Budget.
● Identify the projects to be included in Cluster Initial Projects Portfolio .
● Ensure, for every project in the Cluster Initial Projects Portfolio , there
are:
○ confirmed demands.
○ confirmed site locations.
○ updated Project Scope.
○ class 5 cost estimate.
○ level 1 schedule.
○ initial business case.
● Prioritize projects using (PMF-004-FYP-010 Project Prioritization
Template).
● Develop the Cluster Initial Projects Portfolio .
● Use (PMF-004-FYP-005 Draft Five-Year Projects Portfolio Plan
Checklist) to help develop Cluster Initial Projects Portfolio.
● Send the Cluster Initial Projects Portfolio to Cluster Projects GM for
confirmation.
Roles: Responsible:
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Cluster Projects GM
Consulted:
Cluster PMO Manager
Director
Cluster Finance GM
Asset Management GM
Corporate Finance Planning & Reporting GM
Cluster Projects GM
Informed:
Director
Asset Management GM
4.2.4.14 PMM-004-FYP-020-140 Confirm Cluster Initial Projects Portfolio
Procedure: ● Review and confirm Cluster Initial Projects Portfolio .

Checklist) to help review and confirm Cluster Initial Projects Portfolio.
Roles: Responsible: Cluster Projects GM
Accountable: Cluster Senior GM

Consulted:
Cluster PMO Manager
Director
Cluster Finance GM
Informed:
Cluster Senior GM
Director
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4.2.4.15 PMM-004-FYP-020-150 Develop NWC Initial Projects Portfolio
Procedure: ● Review Cluster Initial Projects Portfolio Plans

● Ensure that every project is previously approved in the National Master
Plan.
● Review all projects against the NWC’s medium-term Capital Budget.
● Confirm projects to be included in NWC Initial Projects Portfolio .
● Ensure, for every project in NWC Initial Projects Portfolio , there are:
○ confirmed demands.
○ confirmed site locations.
○ updated Project Scope.
○ class 5 cost estimate.
○ level 1 schedule.
○ initial business case.
● Prioritize projects using (PMF-004-FYP-010 Project Prioritization
Template).
● Develop the NWC Initial Projects Portfolio .
Checklist) to help develop NWC Initial Projects Portfolio.
● Send the NWC Initial Projects Portfolio to Capital Projects Strategic
Planning GM for confirmation.
Roles: Responsible:
Director
Consulted:
Cluster Projects GM
Director
Asset Management GM
Informed:
Cluster Projects GM
4.2.4.16 PMM-004-FYP-020-160 Confirm NWC Initial Projects Portfolio
Procedure: ● Review and confirm NWC Initial Projects Portfolio .

Checklist) to help review and confirm NWC Initial Projects Portfolio.
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Consulted:
Director
Director
PMO GM
Asset Management GM
Informed:
Director
Cluster Projects GM
Asset Management GM
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4.2.4.17 PMM-004-FYP-020-170 Audit Development of Local Master and Plan Cluster

Portfolio
Procedure: ● Capital Projects Strategic Planning GM shall form an audit team to

thoroughly audit all processes of Local Master Plan development.
● The team shall be developed jointly with Quality Assurance department.
● The team shall develop an audit schedule and shall implement it.
● Prior every audit visit, the audit team shall meet and identify the audit
scope, audit checklist, actions and roles of every audit team member.
● The audit scope shall include but not limited process, deliverables, team
completion and competency, schedule performance, applied quality
control, utilized communication resources, used devices and
technologies and references & benchmarks.
● The first action upon audit start, the audit team shall conduct a
premeeting with the auditee to explain the audit plan. Then the audit team
shall start the audit activities.
● For every monitored non-conformity:
○ An NCR using (PMF-014-COM-013 Non Conformance Report NCR)
shall be issued.
○ Corrective and Preventive actions shall be identified, approved,
implemented and monitored as per the form.
○ The issued NCR shall be registered in (PMF-014-COM-042 Non
Conformance Reports Register) that kept and updated by Quality
Assurance Director.
● After audit visit:
○ the audit team shall issue an audit report using (PMF-006-GOV-029
PMM Audit Report).
○ The report shall be raised to Capital Projects Strategic Planning GM
to be informed and for further directions.
Roles: Responsible:
Audit Team
Quality Assurance Director
Consulted:
Cluster Projects GM
Cluster PMO Manager
Informed:
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4.3 PMM-004-FYP-030 Screen NWC Initial Projects Portfolio

4.3.1 Objective
The objective of this process is to upgrade the NWC Initial Projects Portfolio by screening the
projects by strategic case assessment, potential risk assessment, cross sectoral integration,
monetary threshold of CSE. It also includes the prioritizing the projects that pass the screening.
This Process is where the majority of the work will be undertaken.
4.3.2 Policies
1. Every Cluster is responsible to develop its own Initial Cluster Project Portfolio Plan.
2. In this process, the proposed projects with limited and or uncertain information shall
be converted into a Draft FYPPP after:
i. adequate scrutinization on these projects for potential risks.
ii. assessing for strategic alignment (alignment with National and NWC objectives).
3. All potential projects are to be assessed for Cross-Sector Integration. This
assessment is to ensure proposed projects are:
i. well-coordinated with other projects that not by NWC.
ii. deliver efficiencies wherever possible.
4. All potential projects that are greater than a CSE monetary threshold are to be
supported by a Strategic Outline Case (SOC).
5. All projects that pass the Strategic Outline Cases (Go/No-Go decision) are to be
assessed for potential private sector participation before being prioritized within the
portfolio.
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4.3.3 Flowchart
Figure 4-5 PMM-004-FYP-030 Screen NWC Initial Projects Portfolio Flowchart
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4.3.4 Procedures
4.3.4.1 PMM-004-FYP-030-010 Perform Project Strategic Assessment
Procedure: ● For every project in the Cluster Local Master Plan, Undertake Strategic
Assessment to:
○ provide initial justification for the need to invest.
○ form the Strategic Case in the “Business Case”.
● Consider the key elements in this exercise which are:
○ Initiate proposal investment.
○ Identify key stakeholders and analyze stakeholder interests and
influences. These stakeholders shall participate in workshops to
identify investment drivers.
○ Arrange and facilitate workshops to describe the project, its strategic
context and alignment to existing policies or strategies, and to
identify and agree investment drivers (problems and opportunities).
These workshops shall be attended by the identified key
stakeholders.
○ Finalize and compile the workshop outputs and draft the strategic
assessment document.
● Use (PMF-004-FYP-007 Strategic Assessment Template) and (PMF-
004-FYP-008 Strategic Assessment Checklist).
● Send the Project Strategic Assessment to Cluster Projects GM for
approval
Roles: Responsible:
Consulted:
Director
Cluster Projects GM
Informed:
Director
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4.3.4.2 PMM-004-FYP-030-020 Perform Project Risk Potential Assessment
Procedure: ● Perform Risk Potential Assessment exercise to examine investment risk

at an early stage, from two perspectives:
○ Every project has consequential impact on five the strategic areas
which are political, public, financial, operational business and
commercial change, and dependencies. So, assess the
consequential impact of the intended project on each strategic area.
This should be based on a holistic assessment of the five areas.
○ If the outcome of the Impact Assessment is greater than VERY
LOW, perform a Complexity Assessment. This assessment follows
the same format as the Consequential Impact Assessment and is
broken down into four areas namely Strategic Profile, Delivery
Challenge, Capacity and Capability, and Scale.
● Combine the outputs from the two impact assessments to help determine
the overall Risk Potential Assessment.
● Determine overall Risk Potential Assessment.
● Review and make possible readjustments to the Strategic Assessment
that prepared in (PMM-004-FYP-030-010 Undertake Project Strategic
Assessment)
● Use (PMF-004-FYP-021 Risk Potential Assessment Template).
● Send the Project Risk Potential Assessment to Cluster Projects GM for
approval.
Roles: Responsible:
Consulted:
Director
Risk Management Lead
Cluster Projects GM
Informed:
Director
Business Planning Director
4.3.4.3 PMM-004-FYP-030-025 Approve Project Strategic Assessment and Project
Risk Potential Assessment
Procedure: ● Review and approve:

○ Project Strategic Assessment
○ Project Risk Potential Assessment
● Give a combined “GO” or “No Go” decision for the two assessments.
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Consulted:
Strategic Planning Manager
Informed:
4.3.4.4 PMM-004-FYP-030-030 Assess Project Cross-Sectoral Integration
Procedure: ● Perform a cross-sectoral integration assessment to ensure that projects

that NWC is executing or planning to execute:
○ are based on a homogenous set of data and policies.
○ are place-based.
○ are well-coordinated with other affected or affecting Entities (i.e.
external stakeholders and their plans).
○ deliver an integrated cross sectoral outcome.
● To perform cross-sectoral integration assessment, perform its three
primary assessments:
○ Ensure consistency in the use of data, projections and policy
assumptions (population, education, growth rates, environmental
and planning policies, local content and Saudization, etc.).
○ Identify interdependencies (with other Entities) such as forming
cross-sectoral partnerships through forming Working Groups to:
- check for fragmentation
- check for duplication of services
- check for bottlenecks
- facilitate information exchange
- etc.
○ Maximize solution enhancement through collaborative management
across related Entities.
● Undertake a cross-sectoral integration assessment for every project in
the Cluster Initial Projects Portfolio. It identifies areas of collaboration or
conflict that to be addressed. It helps identify and confirm which projects
within its portfolio are suitable for potential private sector participation.
● Use (PMF-004-FYP-013 Cross-Sector Integration Checklist) and (PMF-
015-RIS-016 List of Potential Stakeholders).
● Send the Project Cross-Sectoral Integration Assessment to Cluster
Projects GM for approval.
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Roles: Responsible:
Consulted:
Director
Informed:
Director
Business Planning Director
4.3.4.5 PMM-004-FYP-030-035 Approve Project Cross-Sectoral Integration
Assessment
Procedure: ● Review and approve Project Cross-Sectoral Integration Assessment.

Consulted:
Informed:
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4.3.4.6 PMM-004-FYP-030-040 Develop Project Business Case
Procedure: ● A Business Case is prepared only:

○ if the proposed project has passed procedure (PMM-004-FYP-030-
030).
○ to create a FYPP VO request.
● Develop the Business Case in Five Case Model using:
○ (PMF-004-FYP-001 Business Case).
○ (PMF-004-FYP-018 Five Case Model Guidelines).
○ (PMF-004-FYP-004 Business Case Checklist).
● Developing the Business Case involves the following:
○ Review of the Strategic Assessment prepared earlier to capture, if
any, changes in the project or its context.
○ Prepare the Five Cases of the Business Case Model, namely:
- Strategic Case
- Economic Case
- Commercial Case
- Financial Case
- Management Case
● Develop class 4 cost estimate and include it in the business case.
● Cluster Projects GM shall endorse the Project Business Case and raise
it to Cluster Senior GM for 1st approval.
Cluster Projects GM
Roles: Responsible:
Project Requester (in FYP VO)
Consulted:
Cluster Engineering Manager
Director
Informed: Cluster Senior GM
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4.3.4.7 PMM-004-FYP-030-050 Approve Project Business Case at Cluster
Procedure: ● Review and giving 1st approval the completed Business Case/s within 7
days.
● Use (PMF-004-FYP-018 Five Case Model Guidelines), Use (PMF-004-
FYP-001 Business Case) and (PMF-004-FYP-004 Business Case
Checklist) to review the Business Case.
● Send the Business Case to the Capital Projects Strategic Planning GM
for review and final approval.
Roles: Responsible: Cluster Senior GM

Cluster Projects GM
Consulted:
Project Requester
Informed:
Director
4.3.4.8 PMM-004-FYP-030-055 Approve Project Business Case at HQ
Procedure: ● Consult the followings about the Business Case elements:

○ Technical Services GM on Project Scope and Class 5 Cost.
○ Scheduling & Control GM on Level 1 Project Schedule.
○ PMO GM on Risk List.
○ Portfolios Strategic Planning & Spending Efficiency Director on the
Financial Case.
○ Strategic Studies Manager to agree on Commercial Case.
● Conduct a review with Portfolios Strategic Planning & Spending
Efficiency Director and Strategic Studies Manager to agree review the
feedback form P&TS GMs and sum up an opinion to give the final
approval.
● Give the final approval within 7 days from cluster submission.
● Send back the Business Case to Cluster.
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Consulted:
PMO GM
Director
Cluster Projects GM
Project Requester
Informed:
Director
4.3.4.9 PMM-004-FYP-030-060 Confirm Projects Suitable for Private Sector
Participation
Procedure: ● Asses every project that had a Business Case to determine whether they
are suitable or not for potential private sector participation.
● Forward all projects identified as potentially suitable for private sector
participation to the National Centre for Privatization (NCP) for formal
assessment.
● Receive the response from NCP and:
○ Projects that deemed (by the NCP) suitable for private sector
participation, shall follow the NCP’s defined project delivery route.
○ Projects that deemed (by the NCP) NOT suitable for private sector
participation, shall continue in FYPP planning for further action.
Cluster Projects GM
Roles: Responsible:
Consulted:
Director
National Centre for Privatization (NCP)
Informed:
Cluster Senior GM
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4.3.4.10 PMM-004-FYP-030-070 Prepare Project Prioritization
Procedure: ● To perform this procedure use as a guide (PMF-004-FYP-019 Public

Project Prioritization Guidelines) and (PMF-004-FYP-010 Project
Prioritization Template).
● Develop prioritization criteria utilizing:
○ merit factors identified earlier such as:
- Risk.
- Benefit Cost Ratio
- Social and Environmental Index
○ Beside additional merit factors such as:
- National Security
- Regional Equity
- Quick Wins
● In the criteria, assign a weight to every merit factor. It is possible to apply
normalization for each merit result for more realistic results.
● Apply the criteria to prioritize the remaining projects of Cluster Initial
Project Portfolio (i.e. those to be funded by the MOF). The value of each
assessed project is known as “overall investment score”.
● Map projects from t the highest overall investment scores to lowest on to
a Five-Year Plan. Add initial cost estimate and initial project schedule in
Business Case and ensure the MOF budget cap is not exceeded.
Roles: Responsible:
Consulted:
Director
Cluster Projects GM
Director
Informed:
Cluster Projects GM
4.4 PMM-004-FYP-040 Develop Draft FYPPP and Submit for Review

4.4.1 Objective
The objective of this process is to collate the projects, along with all back up developed
documentation to form a draft FYPP plan then submit it to the Joint Working Group (CAPEX
Panel) to perform an independent review on it.
4.4.2 Policies
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1. The draft FYPPP with all its documentation must be submitted to the Joint Working
Group (CAPEX Panel) for formal review and written feedback.
4.4.3 Flowchart
Figure 4-6 PMM-004-FYP-040 Prepare Draft FYPPP and Submit for Review Flowchart
4.4.4 Procedures
4.4.4.1 PMM-004-FYP-040-010 Develop Draft Cluster FYPPP
Procedure: ● Based on outcomes from the previous phase, prepare a Draft Cluster
FYPPP.
○ Include in the draft plan all projects which shall seek for MOF funding
approval.
○ Develop an initial financial plan for the FYPPP.
○ Attach documentations prepared in the previous processes to the
projects included within the draft plan.
Checklist) to help prepare Draft Cluster FYPPP.
● Endorse the Draft Cluster FYPPP.
● Raise the Draft Cluster FYPPP to Capital Projects Strategic Planning
GM.
Roles: Responsible:
Cluster Projects GM
Consulted:
Director
Director
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Informed:
Cluster Senior GM
4.4.4.2 PMM-004-FYP-040-015 Develop Draft NWC FYPPP
Procedure: ● Receive from each cluster its Draft Cluster FYPPP.

● Compile, consolidate and integrate all Draft Cluster FYPPPs to develop
Draft NWC FYPPP.
○ Include in the draft plan all projects which shall seek for MOF funding
approval.
○ Attach documentations prepared in the previous processes to the
projects included within the draft plan.
Checklist) to help prepare Draft NWC FYPPP.
Roles: Responsible:
Director
Spending Efficiency & Budget Manager
Consulted:
Cluster Projects GM
Asset Management GM
Cluster Projects GM
Informed:
4.4.4.3 PMM-004-FYP-040-020 Submit Draft NWC FYPPP to CAPEX Panel for
Review
Procedure: ● Submit DRAFT Entity 5-Year Projects Portfolio Plan to the Joint Working
Group (CAPEX Panel) for review.
● Present the DRAFT Entity 5-Year Projects Portfolio Plan and all its
documentations to the Joint Working Group (CAPEX Panel).
● If the Joint Working Group (CAPEX Panel) inquires about submitted plan,
promptly reply.
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Cluster Projects GM
Consulted:
Joint Working Group (CAPEX Panel)
Informed: Joint Working Group (CAPEX Panel)
4.5 PMM-004-FYP-050 Update FYPPP and Prepare Annual Capital Works

Plan
4.5.1 Objective
The objective of this process is to review the feedback received from the Joint Working Group
(CAPEX Panel) and update the Draft NWC FYPPP by incorporating the CAPEX Panel
feedback.
Also, it includes preparation of the Annual Capital Works Plan which represents the key
document for requesting the Annual Budget from MOF.
4.5.2 Policies
1. The feedback that received from the Joint Working Group (CAPEX Panel) must be
incorporated in the Draft NWC FYPPP.
2. All Projects in the Draft NWC FYPPP must be sub-categorized into five Annual Capital
Works Plans. Annual plan of the specific year shall be the supporting document in
requesting the Annual Budget of that year from MOF.
4.5.3 Flowchart
Figure 4-7 PMM-004-FYP-050 Update FYPPP and Prepare Annual Capital Works Plan Flowchart
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4.5.4 Procedures
4.5.4.1 PMM-004-FYP-050-010 Receive and Review Formal CAPEX Panel Feedback
Procedure: ● Capital Projects Capital Projects Strategic Planning GM shall:

○ receive from the Joint Working Group (CAPEX Panel) formal written
feedback with potential recommendations for revisions / additions,
etc.
○ transmit the received feedback to Portfolios Strategic Planning &
Spending Efficiency Director and Strategic Studies Manager to split
the feedback into cluster packages.
● Portfolios Strategic Planning & Spending Efficiency Director and
Strategic Studies Manager shall split the feedback into cluster packages.
● If needed, Capital Projects Strategic Planning GM, Portfolios Strategic
Planning & Spending Efficiency Director and Strategic Studies Manager
shall seek further clarification or discussion with Joint Working Group
(CAPEX Panel).
● When required, they shall seek a post-review consultation with Joint
Working Group (CAPEX Panel).
● If cluster team needs a clarification or post-review consultation from the
Joint Working Group (CAPEX Panel), they shall obtain it through Capital
Project Strategic Planning team at HQ.
Roles: Responsible:
Director
Consulted:
Cluster Projects GM
Informed:
4.5.4.2 PMM-004-FYP-050-020 Update Draft Cluster FYPPP and Develop the Final
Cluster FYPPP
Procedure: ● Study the feedback received from Joint Working Group (CAPEX Panel).
● Update Draft Cluster FYPPP by:
○ incorporating the feedback in the Draft Cluster FYPPP.
○ performing any consequent change, revision, re-prioritization on the
Draft Cluster 5-Year Projects Portfolio Plan.
● Develop the Final Cluster FYPPP.
● Endorse the Final Cluster FYPPP.
● Use (PMF-004-FYP-006 Final Five-Year Projects Portfolio Plan
Checklist) to help develop the Final Cluster FYPPP.
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Roles: Responsible:
Cluster Projects GM
Consulted:
Director
Director
Informed:
Cluster Senior GM
4.5.4.3 PMM-004-FYP-050-030 Develop Cluster Annual Capital Works Plan
Procedure: ● Cluster Strategic Planning Manager and Cluster Technical Services

Director shall prepare the Cluster Annual Capital Works Plan using the
updated FYPPP which is required by the MOF to formally assess and
ultimately grant annual budget to NWC.
● Cover in Cluster Annual Capital Works Plan the works from 5-Year
Projects Portfolio Plan that shall be performed only in the forthcoming
year. The required associated financial obligations shall be attached to
the Cluster Annual Capital Works Plan.
● Cluster Projects GM shall review and approve the Cluster Annual Capital
Works Plan then forward it, along with the final Cluster FYPPP, to Capital
Projects Strategic Planning GM to obtain the annual budget from MOF.
Roles: Responsible:
Cluster Projects GM
Consulted:
Director
Director
Informed:
Cluster Senior GM
4.6 PMM-004-FYP-060 Develop Final FYPPP and Annual Capital Works

Plan and Submit to MOF for Budget Approval
4.6.1 Objective
The objective of this process is to the objective of this process is to develop the Final NWC
FYPPP and Final NWC Annual Capital Works Plan. It also includes submitting the NWC Annual
Capital Works Plan to MOF to obtain the annual approval.
4.6.2 Policies
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1. The Final NWC FYPPP is the result of consolidation of the six Final Cluster FYPPPs.
2. The Final NWC Annual Capital Works Plan is the result of consolidation of the six
Final Cluster Annual Capital Works Plan.
3. Every cluster is responsible to annually update the Cluster FYPP in alignment with
the Local Master Plan. The cluster is to obtain approval on the updated Cluster FYPP
form Capital Projects Strategic Planning GM as per the approved updating
procedures. The guideline (PMF-004-FYP-022 FYPP Update Guidelines) to be used
in updating process.
4.6.3 Flowchart
Figure 4-8 PMM-004-FYP-060 Prepare Final FYPPP and Annual Capital Works Plan and Submit to
MOF for Budget Approval Flowchart
4.6.4 Procedures
4.6.4.1 PMM-004-FYP-060-010 Develop the Final NWC FYPPP and Final NWC
Capital Works Plan
Procedure: ● Receive from clusters the finalized version of:

○ Cluster FYPPP
○ Cluster Annual Capital Works Plan
● Compile, consolidate and integrate the received Final Cluster FYPPPs
to develop Final NWC FYPPP.
● Compile, consolidate and integrate the received Final Cluster Annual
Capital Works Plan to develop Final NWC Annual Capital Works Plan.
● Use (PMF-004-FYP-006 Final Five-Year Projects Portfolio Plan
Checklist) to help develop the Final Cluster FYPPP.
Roles: Responsible:
Spending Efficiency & Budget Manager
Director
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Consulted:
Cluster Projects GM
Asset Management GM
Cluster Projects GM
Informed:
4.6.4.2 PMM-004-FYP-060-020 Submit Final NWC FYPPP and Final NWC Annual
Capital Works Plan to CAPEX Panel for Approval
Procedure: ● Submit Final NWC FYPPP and Final NWC Annual Capital Works Plan to
the Joint Working Group (CAPEX Panel) for approval.
● Present the Final NWC FYPPP and Final NWC Annual Capital Works
Plan and all related documentations to the Joint Working Group (CAPEX
Panel).
● If the Joint Working Group (CAPEX Panel) inquires about submitted
plans, promptly reply.

Cluster Projects GM
Consulted:
Director
4.6.4.3 PMM-004-FYP-060-030 Approve NWC FYPPP and NWC Annual Capital

Works Plan
Procedure: ● After receiving the CAPEX Panel approval, give final approval on the
NWC FYPPP and NWC Annual Capital Works Plan.
● Upload the approved NWC FYPPP and NWC Annual Capital Works Plan
to OPPM.

Cluster Projects GM
Consulted:
Director
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Informed:
Cluster Projects GM
Director
4.6.4.4 PMM-004-FYP-060-040 Obtain Budget Approval on NWC FYPPP and NWC
Annual Capital Works Plan from MOF
Procedure: ● Submit to MOF the approved:

○ NWC FYPPP
○ NWC Annual Capital Works
● Receive the MOF response after the MOF:
○ reviews the NWC Annual Capital Works Plan in conjunction with
NWC FYPPP.
○ reviews and confirms the NWC Five-Year capital budget request
against its fiscal cap and formally responds by (approval / approval
with conditions / reject).

Cluster Projects GM
Consulted:
Director
MOF
Informed: MOF
4.6.4.5 PMM-004-FYP-060-050 Distribute the Approval from CAPEX Panel and MOF
Procedure: ● Share with Capital Projects & Technical Services VP and Cluster
Projects GM the:
○ FYPPP and Annual Plan approvals from Joint Working Group
(CAPEX Panel).
○ Budget (approval / approval with conditions) from MOF
● Share with Joint Working Group (CAPEX Panel) the Budget (approval /
approval with comments) form MOF.
● Post MOF budget approval, NWC shall then register its projects with
Mashroat as a first action in the first stage in project life cycle.
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Consulted:
Director
Cluster Projects GM
Informed:
4.7 PMM-004-FYP-070 Five-Year Projects Portfolio Variation Control
4.7.1 Objective
The objective of this process is to ensure that all projects to be executed are part of the Five-
Year Projects Portfolio and fulfill the FYPP development requirements specially having a
consistent Business Case.
4.7.2 Policies
1. Not business case shall be developed for projects that funded by other entities.
2. This process shall be implemented for changing an approved Five-Year Projects
Portfolio plan.
3. Every project to be executed under Capital Projects & Technical Services department
must be part of the Five-Year Projects Portfolio Plan and must fulfill (by documented
evidence that proves the required workshops conducting, the specialist contributions
and required studies) all FYPP development requirements describe in this section
such as:
i. Need for the projects (the problem).
ii. Strategic Assessment.
iii. Class 5 Cost Estimation.
iv. Level 1 Schedule.
v. Preferred site option that selected over at least three site options.
vi. Risk List.
vii. Cross Sector Integration.
viii. Business Case.
ix. PPP study with result “PPP is not needed”.
x. CSE approval (obtained by Capital Projects Strategic Planning dept.).
4. Any request for a new project must include an approved business case whether new
or updated.
5. The (PMF-004-FYP-020 FYPP Variation Register) must be continuously updated.
6. The Business Case must be approved by Capital Projects Strategic Planning GM
before submitting the FYPPP Variation request.
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4.7.3 Flowchart
Figure 4-9 PMM-004-FYP-070 Five-Year Projects Portfolio Variation Control Flowchart
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4.7.4 Procedures
4.7.4.1 PMM-004-FYP-070-010 Develop FYPP Variation Documents
Procedure: ● Monitor any need to make any change to FYPPP such as:
○ execute a new project that not included in the approved FYPPP.
○ make any change to any aspect to a project that included in the
FYPPP.
● If monitored a need to:
○ create a new project:
- Identify and document the need (the problem).
- Conduct and document a Strategic Assessment for the needed
project.
- Develop and document Class 5 Cost Estimation.
- Develop and document Level 1 Schedule for the project.
- Identify the preferred site option over at least three site options
by conducting assessment investigations. Investigation
activities shall be documented.
- Identify, over a workshop, potential project risks and document
the identified risks in a list.
- Perform a Cross Sector Integration research and document the
activities and results.
- Develop a Business Case for a new project or update an
existing Business Case for a project exists in the FYPPP using
(PMF-004-FYP-001 Business Case), (PMF-004-FYP-004
Business Case Checklist) and (PMF-004-FYP-018 Five Case
Model Guidelines for Business Case) to develop the Business
Case.
○ change an aspect in a project in the FYPPP:
- Identify and document the need (the problem).
- Conduct and document a Strategic Assessment for the needed
change.
- Propose and document a revised version to the followings as
needed after performing required studies, consultation and
investigations:
· Class 5 Cost Estimation
· Level 1 Schedule.
· preferred site location.
· Risk Lists.
· Cross Sector Integration research.
· Business Case.
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Roles: Responsible:
Cluster PMO Manager
Consulted:
Cluster Projects GM
Informed: Cluster Projects GM
4.7.4.2 PMM-004-FYP-070-020 Develop and Raise the FYPP Variation Request
Procedure: ● Cluster Strategic Planning Manager and Cluster Technical Services

Director shall:
○ develop an FYPP Variation Request using (PMF-004-FYP-015
FYPP Variation Request Approval Form (Clusters)) or (PMF-004-
FYP-016 FYPP Variation Request Approval Form (HQ)) as per the
project engagement.
○ Consolidate and attach the above created documents and any other
needed documents.
● Cluster Projects GM shall:
○ review and approve the:
- Business Case (individually)
- The whole FYPP Variation Request.
○ send the FYPP Variation Request to Capital Projects Strategic
Planning GM.
○ send the FYPP to Cluster Senior GM for approval.
● Cluster Senior GM shall:
○ review and approve the FYPP Variation Request.
○ send the FYPP Variation Request to Capital Projects Strategic
Planning GM for further process.
● Update the (PMF-004-FYP-020 FYPP Variation Register) accordingly.
● This procedure shall be completed within 7 days.
Roles: Responsible:
Cluster Projects GM
Cluster Senior GM
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Consulted:
Cluster PMO Manager
Informed: Capital Projects Strategic Planning GM
4.7.4.3 PMM-004-FYP-070-030 Review the FYPP Variation Request at HQ Level
Procedure: ● Capital Projects Strategic Planning GM shall consult the followings about
the Business Case elements within 5 days:
○ Technical Services GM on Project Scope and Class 5 Cost.
○ Scheduling & Control GM on Level 1 Project Schedule.
○ PMO GM on Risk List.
○ Portfolios Strategic Planning & Spending Efficiency Director on the
Financial Case.
○ Strategic Studies Manager to agree on Commercial Case.
● Based on the above feedback, Portfolios Strategic Planning & Spending
Efficiency Director and Strategic Studies Manager shall review and
comment:
○ the remaining sections on the Business Case
○ all documents of the FYPP Variation Request.
● Capital Projects Strategic Planning GM shall forward the feedback
comments to the Cluster Projects GM for implementation

Consulted:
Cluster Projects GM
Cluster Senior GM
PMO GM
Director
Project Requester
Cluster Projects GM
Informed:
Cluster Senior GM
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4.7.4.4 PMM-004-FYP-070-040 Incorporate the HQ Feedback
Procedure: ● Cluster Projects GM shall incorporate the feedback comments, through

Cluster Technical Services Department, then shall return the revised
Business Case to Capital Projects Strategic Planning department.
● Cluster Projects GM shall send the revised FYPP Variation Request to
Capital Projects Strategic Planning Manager for further process.
Roles: Responsible:
Cluster PMO Manager
Cluster Projects GM
Consulted:
Cluster Projects GM
PMO GM
Director
Informed:
Cluster Senior GM
4.7.4.5 PMM-004-FYP-070-050 Identify the FYPP Variation Request Impact on the
FYPPP
Procedure: ● Portfolios Strategic Planning & Spending Efficiency Director and

Strategic Studies Manager shall identify the FYPP Variation Request
impact on the Five-Year Projects Portfolio Plan.
● Document this identification and add it to the FYPP Variation Request.
Roles: Responsible:
Director
Consulted:
Cluster Projects GM
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4.7.4.6 PMM-004-FYP-070-060 Obtain CAPEX Panel Approval on the Varied FYPPP
Procedure: ● Capital Projects Strategic Planning GM shall forward the FYPP Variation
Request with its Business Case to Joint Working Group (CAPEX Panel)
for review and approval if applicable.
● Capital Projects Strategic Planning GM shall receive the Joint Working
Group (CAPEX Panel) feedback and comments if any.
● Capital Projects Strategic Planning GM shall forward the comments to
the Cluster Projects GM for implementation.
● Cluster Projects GM shall implement the comments through Cluster
Technical Services Department then shall return the revised Business
Case to Capital Projects Strategic Planning department. If there is any
inquiry to Joint Working Group (CAPEX Panel), Cluster Technical
Services Department shall seek inquiry feedback from Joint Working
Group (CAPEX Panel) through Capital Projects Strategic Planning
department.
● Capital Projects Strategic Planning GM shall forward the revised
Business Case to Joint Working Group (CAPEX Panel) for review and
approval.

Consulted:
Director
4.7.4.7 PMM-004-FYP-070-070 Approve the FYPP Variation Request at CP Strategic

Department
Procedure: ● Review the FYPP variation request and its attached documentations.
● As needed, discuss with Cluster Senior GM and request for any
additional information.
● Approve the FYPP Variation Request and forward it to Capital Capital
Projects & Technical Services VP for final approval.
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Consulted:
Director
Informed: Capital Projects & Technical Services VP
4.7.4.8 PMM-004-FYP-070-080 Final Approval on the FYPP Variation Request
Procedure: ● Review the FYPP variation request and its attached documents.
● As needed, Discuss with Capital Projects Strategic Planning GM and
provide any required directions.
● Give final approval on the FYPP Variation Request and send it to Capital
Projects Strategic Planning GM for implementation.
Roles: Responsible: Capital Capital Projects & Technical Services VP
Accountable: Capital Capital Projects & Technical Services VP
Consulted: Capital Projects Strategic Planning GM
4.7.4.9 PMM-004-FYP-070-090 Implement the Approved FYPP Variation
Procedure: ● Capital Projects Strategic Planning GM shall send the approved FYPP
Variation to Portfolios Strategic Planning and Spending Efficiency
Director for implementations.
● Portfolios Strategic Planning and Spending Efficiency Director shall:
○ notify all relevant stakeholders of approved variation and the
variation order.
○ implement the approved FYPPP Variation and update all required
documents.
○ publish the varied FYPPP.
Roles: Responsible:
Director
Consulted: Strategic Studies Manager
Informed: Relevant Stakeholders
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The table below identifies the KPIs of Five-Year Projects Portfolio Planning. The NWC Project
Table 4-1 Five-Year Projects Portfolio Planning KPIs

Detail Measurement
Every cluster have Does the cluster have

1 an approved Local an approved Local Quarterly Yes NA No
Master Plan. Master Plan?
Every cluster have

Does the cluster have
2 an approved Quarterly Yes NA No
an approved FYPP?
FYPP.
Every cluster have

Does the cluster have
an approved
3 an approved Annual Quarterly Yes NA No
Annual Capital
Capital Works Plan?
Works Plan.
Every project in the Number of projects in

current Local current Local FYPP that
4 FYPP have an do not have an Monthly 0 NA >0
approved Business approved Business
Case. Case.
Every FYPP Number of FYPP

Variation in all Variations that
5 clusters is through implemented to Local Monthly 0 NA >0
an approved FYPP FYPP without an
VO. approved FYPP VO.
4.9 Attachments
The table below identifies mandated forms, templates and guidelines for this section (PMM-004-
FYP Five-Year Projects Portfolio Planning).
Table 4-2 Project Five-Year Projects Portfolio Planning forms, templates and guidelines
Document No. Title
PMF-004-FYP-001 Business Case
PMF-004-FYP-002 Business Case Approval Form
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Document No. Title
PMF-004-FYP-003 Initial Project Scope Outline Form
PMF-004-FYP-004 Business Case Checklist
PMF-004-FYP-005 Draft Five-Year Projects Portfolio Plan Checklist
PMF-004-FYP-006 Final Five-Year Projects Portfolio Plan Checklist
PMF-004-FYP-007 Strategic Assessment Template
PMF-004-FYP-008 Strategic Assessment Checklist
PMF-004-FYP-010 Project Prioritization Template
PMF-004-FYP-011 Data and Policy Assumption Checklist
PMF-004-FYP-012 Inter-Dependency Matrix Template
PMF-004-FYP-013 Cross-Sector Integration Checklist
PMF-004-FYP-015 FYPP Variation Request Approval Form (Clusters)
PMF-004-FYP-017 Initial Business case
PMF-004-FYP-018 Five Case Model Guidelines
PMF-004-FYP-019 Public Project Prioritization Guidelines
PMF-004-FYP-020 FYPP Variation Register
PMF-004-FYP-021 Risk Potential Assessment Template
PMF-004-FYP-022 FYPP Update Guidelines
PMF-004-FYP-023 Card for Adding a Project to FYPP
PMF-004-FYP-024 Register of FYPP Projects
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Section 5 - Project Team Management
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History Page

12/01
● The section abbreviation been changed from “GEN” to “TEA”.

● Project Management Team Roles are updated as per current NWC Organizational
Structure
Change
● A description for RACI Matrix is added.
Description
● The proposed NWC Projects Department Structure is removed.
● Responsibility Assignment Matrix (RAM) is updated as per changes in process and
NWC Organizational Structure.
06/02
This section is developed as an update to “Team” section in first version the Project
the changes:
● Updating 5 job profile and delete 34.
Change ● Creating 42 job profiles.

Description ● Updating the RAM according to updated processes, procedures and
Organization chart.
● Creating Master RACI Matrix according to updated processes, procedures and
Organization chart.
● Updating form and materials.
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5 Project Team Management

The subject of this particular section of the Project Management Manual (PMM) is Project Team
Management.
5.1 Project Management Team Roles
This section of PMM identifies the roles involved through the lifecycle of a project. The overall team
includes:
● Cluster roles.
● Various NWC HQ roles.
● Second Party roles (Design Consultant, Supervision Consultant and Contractor).
Some roles are hands-on with the project and others interact with projects from time-to-time or on
a periodic basis, such as at month-end.
The hands-on roles are described in this section of the manual, with an accompanying detailed
Responsibility Assignment Matrix (RAM).
5.1.1 Cluster Projects Team Roles
The roles of NWC Cluster Projects staff who owns responsibilities in PMM are introduce in
below table:
Table 5-1 Cluster Projects Team Roles that Involved in PMM
PMM Projects Role Title Location
Cluster Project GM Cluster
Cluster Technical Services Director Cluster
Cluster Engineering Manager Cluster
Cluster Strategic Planning Manager Cluster
Cluster Scheduling & Control Manager Cluster
Cluster Contracts Administration Section Head Cluster
Cluster Document Control Section Head Cluster
Cluster Cost Control Section Head Cluster
Cluster Testing & Commissioning Section Head Cluster
Cluster Scheduling Section Head Cluster
Cluster Project Control Section Head Cluster
Cluster Environmental Compliance Manager Cluster
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Cluster Environmental Compliance Lead Cluster
Cluster Studies & Licensing Lead Cluster
Cluster PMO Manager Cluster
Cluster Risk Section Head Cluster
Cluster Project Performance Monitoring Section Head Cluster
Cluster Quality Assurance Section Head Cluster
Business Unit Construction Director Business Unit
NWC Project Manager Business Unit
Business Unit Safety Section Head Business Unit
Business Unit Interface Section Head Business Unit
5.1.2 HQ Projects Team Roles

The roles of NWC HQ Projects staff who owns responsibilities in PMM are introduce in below
table:
Table 5-2 HQ Projects Team Roles that Involved in PMM
Capital Projects & Technical Services VP HQ
Scheduling & Control GM HQ
Scheduling & Control Director HQ
Contractors’ Invoices Payment Section head HQ
Control Section Head HQ
Scheduling Section Head HQ
Testing & Commissioning Director HQ
Special Projects Director HQ
Contract Manager HQ
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Claims & Disputes Section Head HQ
Contracts Administration Section Head HQ
Document Control Manager HQ
Projects Closeout Section Head HQ
PMO GM HQ
Project Performance Monitoring Director HQ
Risk Management Manager HQ
Monitoring Section Head HQ
Center of Excellence Director HQ
Continuous Improvement Manager HQ
Quality Assurance Director HQ
Capital Projects Strategic Planning GM HQ
Portfolios Strategic Planning & Spending Efficiency Director HQ
Strategic Planning Manager HQ
Spending Efficiency & Budget Manager HQ
Strategic Studies Manager HQ
Technical Services GM HQ
Engineering Director HQ
Value Engineering Director HQ
Cost Estimation Manager HQ
Technical Support Manager HQ
Material Approval Section Head HQ
Environmental Compliance & Wastewater Services GM HQ
Environmental Compliance Director HQ
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Environmental Studies & Licensing Section Head HQ
Wastewater Services Director HQ
Sewage Treatment Plan Technologies Director HQ
Strategic Partnership Management HQ
Execution Director HQ
Agreement Manager HQ
5.1.3 Second Parties Projects Team Roles

Second Parties are Design Consultant, Supervision Consultant and Contractor. The
Supervision Consultant should always be appointed before the Contractor, so that when the
Contractor starts work, there will already be a supervision in place.
The roles of second parties who owns responsibilities in PMM are introduce in below table.
Actually, some role of second party team members are mentioned in when required such as
Project Manager or Document Controller.
Table 5-3 Second Party Roles
Design Consultant External
Supervision Consultant External
Contractor External
5.2 Responsibility Assignment Matrix (RAM)

The (PMF-005-TEA-100 Responsibility Assignment Matrix RAM) lists all of the project management
activities as rows and all of the Project Team roles as columns. Based RACI model, each cell in the
matrix is then filled-in by one of the following:
● R = Responsible
● A = Accountable
● C = Consulted
● I = Informed
● Blank = no involvement of the role in the activity.
General rules for a good “RACI” practice are as follows:
● Only one role can be accountable for an activity.
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● Accountability cannot be transferred or delegated.

● Responsibility for an activity can lie with one or more roles.
● Responsibility, unlike accountability, can be delegated but all delegations must be
documented and then formally approved by the accountable role.
In case of any conflicts between approval authorities stated in this manual and the latest approved
NWC Delegation of Authority, the latest approved NWC Delegation of Authority shall be followed.
None.
5.4 Attachments
TEA Project Team Management).
Table 5-4 Project Team Management forms, templates and guidelines
Document No. Title
PMF-005-TEA-100 Responsibility Assignment Matrix RAM
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Section 6 - Project Governance Management
Section 6 - Project Governance

Management
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History Page

12/01
2022
● The section abbreviation been changed from “GEN” to “GOV”.

● Replacing the reference to “PMM” by “System” reference to “PMM” by “PMM”.
● The processes “PMM-005-GEN-010 Enterprise Environmental Factors” and “PMM-
005-GEN-020 Organizational Process Assets” are merged under “PMM-006-GOV-
010 Enterprise Environmental Factors and Organizational Process Assets”.
● The process “PMM-006-GOV-050 Control of System Documents and Continual
Improvement” is revised.
● The process “PMM-005-GEN-090 Internal Communication” is revised and
transferred to Communication section as “PMM-014-COM-115 Cascade
Objectives”.
Change ● The process “PMM-006-GOV-110 Human Resources Centralization” is revised.
Description
● The process “PMM-006-GOV-140 PMM user feedback” is revised.
● The process “PMM-005-GOV-150 Control of Monitoring and Measuring Equipment”
is removed.
● The process “PMM-006-GOV-160 Internal Audit” is revised.
● The process “PMM-005-GEN-170 Monitoring & Measurement of System Processes”
is revised
● The process “PMM-006-GOV-180 Stage Gate Review” is revised.
● The processes “PMM-005-GEN-210 Preventive Action” and “PMM-005-GEN-200
Corrective Action” are removed as they are already covered in process “PMM-014-
COM-100 Distribute Non-Conformance Report (NCR)”.
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06/02
This section is developed as an update to “Governance” section in first version the

● Changing the system review for Organizational process assets to semi-annually
instead of quarterly.
Change ● Merging control of system documents and continual improvement processes
Description into one process.
● Simplifying and updating flowcharts.
● Deleting system certification process.
● Updating KPI’s.
● Updating responsibilities to match NWC organization charts.
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6 Project Governance Management

The subject of this particular section of the Project Management Manual (PMM) is Project Governance
Management.
The mission of the Capital Projects & Technical Services team is to provide a management framework
in which clusters are enabled to deliver their projects and programs in line with NWC’s business
objectives.
Projects & Technical Services department provides the following management services in regard to
development of the management framework in line with internationally accepted good practices, using
the Project Management Body of Knowledge (PMBOK) from the Project Management Institute (PMI)
and White Book from National Project Management Organization (NPMO) as guidelines.
Assistance to clusters to help them adopt and implement the management framework; and the key
principles of “governance” exercised by Projects & Technical Services department may be summarized
as follows:
● Ensure that capital projects are properly conceived by the clusters, with formal approval of scope,
budget and timescale by NWC stakeholders, and early appointment of a Project Manager to
deliver each project from inception to handover.
● Ensure that all individual capital projects have their own, individual Project Management Plan
written by the NWC Project Manager and approved by all relevant stakeholders.
● Ensure that individual capital projects are formally exposed to best practice in risk management,
keeping capital projects aligned with NWC business objectives, involving all relevant
stakeholders, and making all risks explicit through regularly-updated registers.
● Ensure that capital projects are formally exposed to a stage gate process, which is moderated
and approved by Projects & Technical Services department, only allowing projects to progress
from one stage to the next if stage gate review criteria have been met and making all stage
progression decisions explicit and auditable.
● Ensure that a formal process for Variation Control is in place, which is followed by all clusters,
involves relevant stakeholders, and provides formally documented and auditable records of
decisions made and instructions issued.
● Ensure that a “one system” approach is adopted across all Clusters in the Kingdom, formally
documented and maintained as a Project Management Manual.
● Ensure that roles, responsibilities and accountabilities are explicitly documented by the clusters.
● Operate an audit and inspections regime to check that projects are following their Project
Management Plans and that process improvements are being properly implemented.
● Act as the channel for formal escalation of capital project problems and issues by the clusters,
where corporate decision-making is required or where authority limits are reached.
● Play a key role in routine progress reporting for the capital programs and act by exception to
intervene at the earliest opportunity to challenge the clusters whenever project performance is
not aligned with NWC’s business objectives.
6.1 PMM-006-GOV-010 Enterprise Environmental Factors and
Organizational Process Assets
6.1.1 Objective
The objective of this process is to proactively ensure that:
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● external influences do not adversely affect the success of projects, as far as practicable.
● ensure that the PMM effectively and efficiently interfaces with other NWC department
manuals and policies, and that PMM is maintained as a valuable knowledge base for
the management of capital projects.
6.1.2 Policies
1. Enterprise Environmental factors includes but not limited to:
i. NWC’s business culture and company structure.
ii. KSA governmental and industry standards (e.g. regulatory agency regulations,
product standards, quality standards, and workmanship standards).
iii. Infrastructure (e.g. existing facilities and capital equipment).
iv. Existing human resources (e.g. skills, disciplines, and knowledge, such as
design, development, legal, contracting and purchasing).
v. Personnel administration (e.g. hiring and firing guidelines, employee
performance reviews, and training records).
vi. The NWC authorizing system.
vii. Marketplace conditions.
viii. Stakeholder risk tolerances (e.g. especially the Ministries of Finance and
Electricity & Water); and
ix. Commercial databases (e.g. standardized cost estimating data, industry risk
study information, and risk databases).
x. NWC Compliance Framework which includes all applicable external regulations.
2. Periodic reviews shall be performed by the Strategic Studies Manager of the above
factors mentioned above.
3. Known and suspected external influences, which can impact upon the success of
NWC’s capital projects, must be reviewed by the Strategic Studies Manager as part
of a structured Semi-annual review of the PMM.
4. The review must be documented and discussed as part of a scheduled Management
Review Meeting.
5. Approved PMM changes (i.e. improvements) must be carried out in a formal manner
in response to the above written review report and its subsequent discussion by
attendees at the Management Review Meeting.
6. The process relies upon periodic reviews by the Continuous Improvement Lead of
changes made by other departments to their policy and procedure manuals, in order
to ensure that PMM remains aligned.
7. The policy and procedure manuals of other departments within NWC must be
reviewed by the Continuous Improvement Lead, in order to identify potential impacts
upon the PMM.
8. The review must be documented and discussed as part of a scheduled Management
Review Meeting.
9. There must be a formal lesson learned capture exercise at the closure of every capital
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project, with the findings fed back to improve the PMM for future projects.
6.1.3 Flowchart
Figure 6-1 PMM-006-GOV-010 Enterprise Environmental Factors and Organizational Process Assets
Flowchart
6.1.4 Procedures
6.1.4.1 PMM-006-GOV-010-010 Schedule EEFs & OPAs Reviews
Procedure: ● Annually, schedule the following to be performed semi-annually:

○ EEFs & OPAs reviews at cluster
○ EEFs & OPAs reviews at HQ
● Communicate the schedule to all clusters to:
○ Cluster Strategic Planning Manager
○ Cluster QA Section Head
● It is recommended to ordinate the schedule with the annual budgeting
cycle to capture any updates to the requirements of MEWA, MOF and
NWC.
Roles: Responsible: Strategic Studies Manager

Consulted:
PMO GM
Cluster Projects GM
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Informed:
Cluster QA Section Head
6.1.4.2 PMM-006-GOV-010-020 Carry Out Review for Enterprise Environmental
Factors at Cluster
Procedure: ● Semi-Annually, complete the Enterprise Environmental Factors section

of the (PMF-006-GOV-002 EEF & OPA Review Checklist).
● Semi-Annually, use the completed checklist as input in writing the (PMF-
006-GOV-003 EEF & OPA Review Report) including commentary and
change recommendations, as appropriate, to cover the checklist findings
for Enterprise Environmental Factors.
● Raise the report to Cluster Strategic Planning Manager.
● Update and retain (PMF-006-GOV-005 External Requirements Tracking
Register).
● Retain the completed checklist and report in NWC ECMS.
Roles: Responsible: Cluster Strategic Planning Manager
Accountable: Cluster Technical Services Director

Consulted:
Cluster PMO Manager
Informed:
Cluster Projects GM
6.1.4.3 PMM-006-GOV-010-030 Carry Out Review for Organizational Process Assets
at Cluster
Procedure: ● Semi-Annually, complete the Organizational Process Assets section of

the (PMF-006-GOV-002 EEF & OPA Review Checklist)
● Semi-Annually, use the completed checklist as input to write the (PMF-
006-GOV-003 EEF & OPA Review Report) including commentary and
change recommendations, as appropriate, to cover the checklist findings
for Organizational Process Assets.
● Raise the report to Cluster Strategic Planning Manager.
● Keep under Review the Interfaces between the Project Management and
the Other NWC Departments.
● Retain the completed checklist and report in NWC ECMS.
Roles: Responsible: Cluster QA Section Head
Accountable: Cluster PMO Manager
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Consulted:
Cluster PMO Manager
Informed:
Cluster Projects GM
6.1.4.4 PMM-006-GOV-010-040 Develop NWC EEFs & OPAs Report at HQ
Procedure: ● Collect Semi-Annual EEFs & OPAs reports that developed at cluster
levels.
● Consolidate the cluster Semi-Annual EEFs and OPAs reports into NWC
Semi-Annual EEFs and OPAs report.
● Retain the report in NWC ECMS.

Consulted:
Cluster Projects GM
PMO GM
Informed:
PMO GM
Cluster Projects GM
6.2 PMM-006-GOV-030 Project Initiator and Sponsor
6.2.1 Objective
The objective of this process is to proactively ensure that every project has a named Initiator
and a named Sponsor, both from within the NWC organization.
6.2.2 Policies
1. Any project without a clearly named Project Initiator or a clearly named Sponsor must
not be allowed to go ahead.
2. NWC Project Managers must NOT act as Project Initiator or Sponsor. They also must
NOT be appointed to any project which does not have a clearly named Project Initiator
and a clearly named Sponsor.
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3. Unless otherwise stated, the Project Initiator is always the named the “Cluster Asset
Management & Operation Excellence GM”.
4. The “Cluster Asset Management & Operation Excellence” must always document the
initiation of projects through inclusion in the periodic Asset Management/Development
Plan, supported by a Business Case document.
5. The Sponsor is always the named Capital Projects & Technical Services VP, who is
accountable for securing and controlling the financial resources to undertake the
project.
6. The Project Initiator and Sponsor must always engage the specialists in Cost
Estimation, scheduling and Risk Management in Clusters in order to support the
Business Case with a realistic budget estimate, an estimate of the project duration, a
consideration of sequencing and packaging within the program/portfolio, and the early
creation of risk registers through the holding of a formal workshop.
6.2.3 Flowchart
Figure 6-2 PMM-006-GOV-030 Project Initiator and Sponsor Flowchart
6.2.4 Procedures
6.2.4.1 PMM-006-GOV-030-010 Ensure the Project Initiator is Named and Recorded
Procedure: ● Before allowing the project to start its Initial Planning, check that the
Project Initiator is identified in the (PMF-004-FYP-001 Business Case).
● Do not allow the project to start if the Project Initiator is not clear or maybe
incorrect.
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Roles:
Responsible: Cluster Projects GM

Consulted:
Cluster Document Control Section Head
Informed: NWC Project Manager
6.2.4.2 PMM-006-GOV-030-020 Ensure the Sponsor is Named and Recorded
Procedure: ● Before allowing the project to start its Initial Planning, check that the
Project Sponsor is identified in the (PMF-004-FYP-001 Business Case).
● Do not allow the project to start if the Sponsor is not clear or maybe
incorrect.

Consulted:
6.3 PMM-006-GOV-040 End User

6.3.1 Objective
The objective of this process is to proactively ensure that NWC’s experts in Cluster Asset
Management & Operation Excellence department are given appropriate opportunity to
participate in the project during its planning, design, construction and, of course, handover
stages.
6.3.2 Policies
1. NWC’s experts in Cluster Asset Management & Operation Excellence department
must be consulted by the Cost Estimation in Clusters in order to allow for whole-life
costing consideration during estimation and budgeting exercises.
must participate in scheduled, formal workshops for project risk management.
must participate in scheduled, formal design reviews, optioneering and value
engineering exercises, and constructability reviews.
4. The design of the asset(s) to be delivered by the project must include consideration
of how the asset will be disposed of at the end of its useful life (this is usually a written
strategy for maintenance, technology refresh, refurbishment and
demolition/replacement).
must participate in formal review and approval of submitted O&M documentation.
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6.3.3 Flowchart
Figure 6-3 PMM-006-GOV-040 End User Flowchart
6.3.4 Procedures
6.3.4.1 PMM-006-GOV-040-010 Ensure That Whole-Life Costing Consideration Was
Made
Procedure: ● Ensure that operational cost was considered during:

○ Initial Planning Stage
○ Design Stage
○ Construction Stage
Operational cost directly affects the project design and total project
budget.
Roles: Responsible: Cluster Cost Estimation Specialist

NWC Project Manager
Consulted:
Document Control Manager
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6.3.4.2 PMM-006-GOV-040-020 Ensure That O&M Topics and Expertise Are Fully
Covered in Workshops
Procedure: ● As participation in a workshop be recorded in the workshop report, the

workshop report must indicate that operation and maintenance topics
were adequately covered in the workshop, by the relevant experts who
attended the workshop.
● The operation and maintenance topics must be included as standard and
routine in workshop agenda.
● Workshop to cover O&M topics includes but not limited to:
○ Business Case development workshops
○ Design workshops such as requirements identification workshop
and optioneering workshop.
○ Risk Workshops.
○ Value Engineering Workshops.
○ Lessons Learned Workshops.
● In case of lack in O&M topics coverage in workshops, NWC Project
Manager shall inform Cluster Asset Management & Operation
Excellence department to participate in the project workshops more
effectively.
Roles: Responsible: NWC Project Manager

Consulted:
Design Consultant
Value Engineering Consultant
Contractor
Supervision Consultant
Informed:
Director
6.3.4.3 PMM-006-GOV-040-030 Ensure That O&M Experts Participate Fully in the
Reviews and Studies
Procedure: ● Design reviews and studies are to be recorded via the Design Review
Checklist.
● Completed checklists must indicate that the relevant experts in Cluster
Asset Management & Operation Excellence department were involved
as part of the reviews and studies.
Roles: Responsible: Engineering Director
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Accountable: Technical Services GM

NWC Project Manager
Consulted:
6.3.4.4 PMM-006-GOV-040-040 Ensure That O&M Experts Fully Participate in

Approvals of O&M documents
Procedure: ● At design stage, ensure the identifications of the design deliverables that
the O&M experts shall participate in reviewing and approving.
● Ensure and record O&M experts participation in document reviews and
approvals.
● Completed forms must indicate that the relevant experts in Cluster Asset
Management & Operation Excellence department were involved as part
of the review and approval of O&M documents.
Accountable: Business Unit Construction Director

Consulted:
Director
6.4 PMM-006-GOV-050 PMM Update and Continual Improvement

6.4.1 Objective
The objective of this process is to ensure that a single and defined Project Management Manual
is implemented Kingdom-wide on capital projects by each and every cluster, and that all
changes made to the PMM are properly prepared, authorized and coordinated. This includes
formal tracking of requirements external to the PMM (e.g. regulations/legislation, international
standards, etc.).
Also, to continually improve the effectiveness of the PMM through application of policies,
cascade of objectives, audit results, analysis of data, corrective and preventive actions, and
management review meetings.
6.4.2 Policies
1. Changes are to be made only through Center of Excellence through this procedure
after obtaining formal approvals.
2. Sources of external requirements must be tracked and the tracking activity must be
recorded in a register.
3. PMM documents must be approved before being implemented.
4. PMM documents of the same type must follow the same layout (i.e. all manual
sections must be identically laid-out following NWC’s established style; all forms and
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guidelines must be identically styled; all learning support materials must be identically
styled).
5. A complete list of PMM documents must be maintained by the Center of Excellence
Director.
6. All PMM documents must be version-controlled, starting from version 1 and
incrementing to version 2, 3, 4, etc. in major increments (i.e. whole version numbers).
7. Version history information must be included in a table in the PMM document itself,
wherever it is practicable to do so (i.e. all PMM documents except simple forms, which
would become cumbersome if version history was embedded).
8. All master electronic files must be securely stored by the Center of Excellence
Director, to prevent loss of files and also to prevent unauthorized changes by users.
9. A working copy of the current version of all PMM documents must be made available
to all Clusters.
10. Formal PMM document Variation Notices issued by the Center of Excellence Director
must clearly state whether or not the change applies to ongoing projects, seeing as
some changes may have contractual implications.
11. All PMM document changes must be recorded in accordance with the procedure
(PMM-006-GOV-060 Control of PMM Documents).
12. Every project document number must be unique using (EPM-ID0-PR-000002 Project
Standard Document Numbering Procedure). If the document mandatorily shall have
a number by NWC systems such as BARQ, TATABOA or ECMS, the Document
Controller is responsible to ensure the uniqueness of this number.
13. Continual improvement, in PMM terms, has two dimensions:
● Increasing the extent to which planned activities are realized (i.e. raising the
degree of compliance with written procedures held within the PMM); and
● Increasing the extent to which planned results are achieved (i.e. progressive
achievement of the tactical and strategic objectives, which are the desired
business benefits of implementing the PMM.
14. The following PMM documents and records are used to drive continual improvement
(illustrated in Figure 6-2, below):
● The NWC Corporate Policy Statements for Quality and HSE sets the
framework for definition of the tactical objectives on projects.
● The tactical objectives themselves define a large subset of targets in support
of the current NWC strategic objectives
● The results of internal and external audits. since audit activity is largely aimed
at sampling the degree of compliance with written procedures in the Project
Management Manual
● Analysis of data. Principally the KPI data, since these are documented in the
PMM KPI Report, where historical trends can be analyzed, future projections
can be made and business decisions can be supported in order to re-align
business performance with the planned targets. Also, root cause analysis of
audit findings and red traffic lights on the PMM KPI Report.
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● Corrective actions, since by their very nature, this type of action is designed to
retrospectively remedy those problems in the business, which have already
been identified and experienced
● Preventive actions, since prevention is better than cure (corrective action) –
although the resources expended on preventive action must be reasonably
practicable in consideration of the defects likely to occur if the preventive action
were not put in place (i.e. increased effectiveness is not to be achieved through
uneconomic reduction in efficiency)
● Management review, since this activity is singularly aimed at retrospectively
assessing PMM performance and proactively considering whether or not the
degree of business direction and control provided by the PMM in its current
mode of use is sufficient to achieve the planned strategic objectives.
Figure 6-4 The Recurring Cycle of Continual Improvement
15. As shown in the diagram, other contributors toward continual improvement arise
through Project Team engagement and team members considering its performance
and potential in relation to their own work and team/personal objectives. Problems
may be highlighted and innovative improvements may be suggested.
16. All employees are empowered, and encouraged, to suggest changes to the PMM
using the formal PMM Improvement Request Form, or by contacting the Continuous
Improvement Lead in person. See the (PMF-006-GOV-032 PMM Improvement
Request Form).
17. The form may be located, completed and submitted online using the SharePoint portal
or may be used in hard-copy format.
18. A log of PMM improvement requests is maintained in the PMM by the Continuous
Improvement Lead. See the (PMF-006-GOV-033 PMM Improvement Request
Register).
19. PMM user feedback (which can include staff complaints) and suggested changes may
also be requested anonymously through use of the Suggestion Box Scheme. A
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suggestion box is available at each office, including construction site offices. Each
box is checked and emptied at least once a week by the key holder.
20. As well as physical suggestion boxes at work locations, there is also a virtual box
provided online through the business intranet.
21. All implemented changes to the PMM are notified to PMM users official
announcement.
22. Rejected or suspended requests and suggestions are notified to the contributing
member of staff, with business justification.
23. A log of Suggestion Box Requests is maintained in the PMM by the Management
Representative.
24. PMM improvement requests and staff suggestions can be made at any time and are
an important contribution towards continual improvement. Recognition of innovation
may be made to contributing employees through appropriate reward to the individual,
in accordance with the Human Resource Policy and Procedure Manual.
6.4.3 Flowchart
Figure 6-5 PMM-006-GOV-050 PMM Update and Continual Improvement Flowchart
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6.4.4 Procedures
6.4.4.1 PMM-006-GOV-050-010 Maintain a Register of External Requirement
Documents
Procedure: ● Use the (PMF-006-GOV-005 External Requirements Tracking Register).

● Liaise with Clusters on a periodic basis (quarterly) to identify changes, or
planned changes, to local legislation and regulations requirements.
● Liaise with Cluster Contracts Administration Section Head to identify and
discuss contractual impacts due to external requirements changes.
● Identify and discuss regional and global improvements in best practice
for asset design and construction, as relevant to the water and sewage
sector.
● Upload and retain the register in the PMM Management Filing System.

Consulted:
Cluster Contracts Administration Section Head
Supply Chain GM
Informed:
HSSE GM
Continuous Improvement Lead
6.4.4.2 PMM-006-GOV-050-020 Identify Need for PMM Improvement and Issue a
PMM Improvement Request(s)
Procedure: ● Analyze the possible PMM improvements.

● Use the (PMF-006-GOV-032 PMM Improvement Request) to record the
rationales for new/updated PMM document(s).
● Keep the (PMF-006-GOV-033 PMM Improvement Register) up-to-date
as a summary of all PMM Improvement Request forms.
● Liaise with related PMM users as necessary to clarify the detail required
on each (PMF-006-GOV-032 PMM Improvement Request) form.
● The PMO GM shall approve or reject individual PMM Improvement
Requests forms.
● Record the approval/rejection reasons on the form and in the register.
Center of Excellence Director
Roles: Responsible:
PMO GM
Accountable: PMO GM
Consulted: NWC Projects Team
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Informed: Center of Excellence Director
6.4.4.3 PMM-006-GOV-050-030 Prepare the New/Updated PMM Document(s)
Procedure: ● Prepare new/updated PMM documents for approved PMM Improvement

Request forms.
● Use the (PMF-006-GOV-006 PMM Document Numbering System) form.
● The version number must be shown on the document and version history
must be documented and retained.
Roles:
Responsible: Continuous Improvement Specialist
Accountable: Continuous Improvement Lead
Consulted: Center of Excellence Director

Informed:
PMO GM
6.4.4.4 PMM-006-GOV-050-040 Approve the Updated PMM Document(s)
Procedure: ● The Capital Projects & Technical Services VP shall approve the updated
document.
● The document shall be raised to the Business Excellence Department
for publishing.
Roles:
Responsible: Capital Projects & Technical Services VP
Consulted: Capital Projects & Technical Services GMs
Informed: Policies, Processes & Procedures Lead
6.4.4.5 PMM-006-GOV-050-050 Ensure the Publishing of the PMM Document(s)
Procedure: ● Ensure that the Business Excellence GM is Publishing the PMM

Document(s).
● Notify all PMM users to implement.
Roles: Responsible: Center of Excellence Director
Accountable: PMO GM
Consulted: Document Control Manager
Informed: NWC Projects Team
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6.5 PMM-006-GOV-060 Control of Project Management Documents

6.5.1 Objective
The objective of this process is to ensure that all PMM records, such as updates to PMM
documents, are identified, handled, stored, archived, retained, retrieved and disposed of in a
consistent manner.
The following are examples of “PMM Records”:
● Project communications held in the ECMS.
● Internal audit reports.
● External audit reports (by a government body or a certification body).
● Non-conformance reports, including details of corrective and preventive actions taken
in response.
● Minutes of management review meetings (held periodically to review the effectiveness
and efficiency of the PMM).
● Customer feedback (i.e. from Cluster Asset Management & Operation Excellence
team).
● PMM improvement requests.
● PMM user feedback (which may include second party Consultants, Contractors and
material suppliers).
● Written delegations of authority.
● PMM document change records.
6.5.2 Policies
1. Project communications (i.e. “project records”) shall be recorded in ECMS by the
Cluster Document Control Section Head assigned to the project, in accordance with
manual section (PMM-014-COM Project Communications Management).
2. All PMM records must be uniquely identified as per (PMF-006-GOV-006 PMM
Document Numbering System).
3. Every project document number must be unique using (EPM-ID0-PR-000002 Project
Standard Document Numbering Procedure). If the document mandatorily shall have
a number by NWC systems such as BARQ, TATABOA or ECMS, the Document
Controller is responsible to ensure the uniqueness of this number.
4. Hard-copy records must be handled with due care and attention (i.e. ensure legibility
and no missing pages nor unidentified pages) and filed securely.
5. All electronic records must be securely stored by the Document Control Manager in
ECMS.
6. All PMM records must be archived, retained, retrieved and disposed of according to
clear, written instructions.
7. The default for hard-copy, project-level PMM records (such as printed design
drawings) is to retain in archival storage (boxed in dry, secure, fireproof storage) for
a period of seven years from handover, after which the boxes and contents may be
permanently destroyed.
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8. The default for soft-copy, project-level PMM records (such as original documents and
correspondence scan files) is to retain within ECMS until handover, upon which
selective files may be retained “online” as a project management knowledge base,
and the remaining files may be retained “offline” as an archive disk in a fireproof and
waterproof safe; or may be moved with the help of NWC’s IT Dept. to an alternative
file server.
6.5.3 Flowchart
Figure 6-6 PMM-006-GOV-060 Control of Project Management Documents Flowchart
6.5.4 Procedures
6.5.4.1 PMM-006-GOV-060-010 Ensure All Documents Are Uniquely Identified,
Stored and Secured
Procedure: ● Uniquely number PMM documents, process and procedures using

(PMF-006-GOV-006 PMM Document Numbering System).
● File all PMM documents (either master copy or in use copies) using
(PMF-006-GOV-008 PMM Document Filing Index).
● Send to Business Excellence:
○ The PMM documents for uploading to formal NWC website.
○ List of access authorities for users.
Roles: Responsible: Center of Excellence Lead
Accountable: Center of Excellence Director
Consulted: Relevant Stakeholders
Informed: Business Excellence GM
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6.5.4.2 PMM-006-GOV-060-020 Review Retention Requirements and Capacity on an

Annual Basis
Procedure: ● As new versions of PMM and its attachments are developed, annually
review the need for:
○ larger secure storing area for hard copies in collaboration with
Business Excellence GM
○ larger secured server for soft copies in collaboration with Document
Control Manager.
● Use the (PMF-006-GOV-009 Archival Instruction) and (PMF-006-GOV-
010 Archival Instruction Register) to review all archival and retention
instructions.

Consulted:
Informed:
6.5.4.3 PMM-006-GOV-060-030 Prepare and Retain the Archive According to the
Written Instructions
Procedure: ● Use the (PMF-006-GOV-009 Archival Instruction) to make all archival

and retention decisions.
● Keep the (PMF-006-GOV-010 Archival Instruction Register) up-to-date
with all completed actions.

Informed:
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6.5.4.4 PMM-006-GOV-060-040 Retrieve, Review and Return the Archive as Needed

During the Retention Period
Procedure: ● Access to project archives must be restricted to the following staff:

○ NWC Project Manager.
○ Business Unit Construction Director.
○ Cluster Projects GM.
○ Capital Projects & Technical Services VP and GMs
● Access requests by others must be coordinated through the above staff.
● The above staff are responsible and accountable for care of the archive
materials whilst the materials have been removed from the store and
placed in their temporary possession, until the archive materials are
formally returned to the store.
● The Cluster Document Control Section Head shall keep the (PMF-006-
GOV-010 Archival Instruction Register) up-to-date with all removals and
returns during the retention period and must check that the full-set of
archive materials remains intact each time it is removed and returned.
Roles: Responsible: Relevant Stakeholder
Accountable: Relevant Stakeholder
Consulted: Relevant Stakeholder
Informed: Relevant Stakeholder
6.5.4.5 PMM-006-GOV-060-050 Define the Need for Further Retention or Final

Disposal and Implement Action
Procedure: ● A review shall be carried out at the end of each defined retention period.
In review decide if there is a need for further retention or not.
● Carry out the steps described on the (PMF-006-GOV-009 Archival
Instruction).
● Keep the (PMF-006-GOV-010 Archival Instruction Register) up-to-date
with all completed steps.
● Final disposal decisions must be approved by the PMO GM.
● Retain or dispose of the archive according to the written instruction.

PMO GM
Consulted:
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Informed:
6.6 PMM-006-GOV-070 Control Responsibilities and Authorities

6.6.1 Objective
The objective of this process is to ensure that all Project Team positions have up-to-date written
Job Profiles at all times, and that all project management activities described by the PMM are
included in a Responsibility Assignment Matrix (RAM).
6.6.2 Policies
1. Approved Organizational Structure and Job Profiles for HQ and Cluster are to be
implemented all over the HQ and clusters.
2. Changes on approved Organizational Structure and Job Profiles for HQ and Cluster
without formal approvals are completely not allowed. These approvals are to be
obtained through PMO GM from authorized person in HQ as per NWC policies.
3. Where a cluster has valid reason to change the default RAM (PMF-005-TEA-100
Responsibility Assignment Matrix RAM), a Local Work Instruction (LWI) must be
developed to describe the change. This LWI must be approved by the PMO GM
before implementation. Examples for LWI are:
i. changing a responsibility to existing role due to staff lack.
ii. adding a role to a responsibility due to lack of experience of existing responsible
role.
4. The Cluster PMO Manager must create and maintain a central register of Local Work
Instructions, ensuring that no Local Work Instruction is allowed to transgress its expiry
date without formal renew.
5. A role can delegate part of his authorities as long as it does not conflict the NWC
Delegation of Authority. Every Delegation of Authority (DOA) must be written and
approved by the PMO GM before implementation. Verbal or mailed DOAs are not
acceptable. Example of delegation of authority is authority to approve a document.
6. Accountabilities in RAM are NOT allowed to be changed, transferred or delegated.
7. In case of any conflicts between approval authorities stated in this manual and the
latest approved NWC Delegation of Authority, the latest approved NWC Delegation
of Authority shall be followed.
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6.6.3 Flowchart
Figure 6-7 PMM-006-GOV-070 Control Responsibilities and Authorities Flowchart
6.6.4 Procedures
6.6.4.1 PMM-006-GOV-070-010 Develop Organizational Structures for Projects
Teams of HQ and Clusters
Procedure: ● Develop organizational structures for projects teams of HQ and Clusters

in collaboration with:
○ Project & Technical Services department staff
○ NWC Human Capital department
○ Any NWC department as required
● Obtain required approvals from authorized person as per NWC policies.
● Cascade the approved Organizational Structures for HQ and Clusters to
all NWC Project Team.
● If a change request on approved Organizational Structure raised, it must
be reviewed and approved through PMO GM from the authorized person
at HQ as per NWC policies.
Roles: Responsible: PMO GM
Accountable: Project & Technical Services VP

NWC Projects Team
Consulted:
Human Capital GM
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6.6.4.2 PMM-006-GOV-070-020 Develop Job Profiles for NWC Projects Team
Procedure: ● Develop Job Profiles for projects team members at HQ and Clusters in
collaboration with:
○ Project & Technical Services department staff
○ Any NWC department as required
● Obtain required approvals from authorized person as per NWC policies.
● Cascade the approved Organizational Structures for HQ and Clusters to
all NWC Project Team.
● If a change request on approved Job Profile(s) raised, it must be
reviewed and approved through PMO GM from the authorized person at
HQ as per NWC policies.
Accountable: Project & Technical Services VP

NWC Projects Team
Consulted:
Human Capital GM
6.6.4.3 PMM-006-GOV-070-030 Develop a Responsibilities Assignment Matrix for

NWC Projects Team
Procedure: ● Based on current approved PMM, develop a Responsibilities Assignment

Matrix (RAM) for NWC Projects Team in collaboration with:
○ NWC Projects Team
● Obtain required approvals from the authorized person within the Capital
Projects & Technical Services department.
● Cascade the approved RAM, as part of PMM documents, to all NWC
Project Team.
● If a change request on approved RAM raised, it must be reviewed and
approved through PMO GM from authorized person at HQ as per NWC
policies.
Accountable: PMO GM
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6.6.4.4 PMM-006-GOV-070-040 Prepare a Local Work Instruction for RAM Change

and/or a Delegation of Authority
Procedure: ● For Local Work Instruction

○ Use the form (PMF-006-GOV-011 Local Work Instruction) to
prepare the request.
○ Attach to the request the current approved:
- Organizational Structure.
- Job profile.
- RAM
● For Formal Delegation of Authority:
○ Use the (PMF-006-GOV-013 Delegation of Authority Record) to
prepare and formally record a delegation of authority from an
employee to an inferior of his.
○ Attach the delegation of authority by any required supporting
document.
● Submit to PMO GM for review and approval before implementation the
Local Work Instructions and/or Delegations of Authority
● Send a copy the Cluster PMO Manager to update the (PMF-006-GOV-
012 Register of Local Work Instruction and Delegation of Authority).

Cluster Projects Team
Consulted:
PMO GM
PMO GM
Informed:
Cluster PMO Manager
6.6.4.5 PMM-006-GOV-070-050 Approve a Local Work Instruction for RAM Change
and/or a Delegation of Authority
Procedure: ● Review and approve/reject the submitted Local Work Instruction for RAM
Change and/or the Delegation of Authority.
● Send the approved/rejected Local Work Instruction for RAM Change
and/or the Delegation of Authority to the Cluster Projects GM for
cascading.
● Send a copy the Cluster PMO Manager to update the (PMF-006-GOV-
012 Register of Local Work Instruction and Delegation of Authority).
Accountable: PMO GM
Consulted: Cluster Projects GM
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Cluster Projects GM
Informed:
Cluster PMO Manager
6.7 PMM-006-GOV-080 Management Representative

6.7.1 Objective
The objective of this process is to ensure that there is a single responsible role and point-of-
contact for all issues relating to management of the PMM, and that the holder of the role is
endorsed by the Capital Projects & Technical Services VP.
6.7.2 Policies
1. The role holder is the named PMO GM.
2. The Management Representative shall ensure that the processes needed for the
PMM are established (i.e. documented, reviewed and approved), and subsequently
implemented and maintained.
3. The Management Representative shall report to the Capital Projects & Technical
Services VP on all matters regarding the PMM, such as: its performance; any need
for its improvement; and advice on resources required to ensure its ongoing
effectiveness and efficiency.
4. The Management Representative shall organize management review meetings and
all associated paperwork.
5. The Management Representative shall ensure promotion of suitable awareness of the
PMM throughout relevant project stakeholders in the NWC business, Consultants and
Contractors.
6. The Management Representative shall liaise with external assessors, such as
Government Auditors and NPMO
7. For other management representative responsibilities, see the role of the PMO GM
as described in other sections of the manual, including the Responsibility Assignment
Matrix.
6.7.3 Flowchart
Figure 6-8 PMM-006-GOV-080 Management Representative Flowchart
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6.7.4 Procedures
6.7.4.1 PMM-006-GOV-080-010 Ensure the Management Representative is
Authorized, Named and Recorded
Procedure: ● The role holder is the PMO GM, unless an alternative is authorized by
the Capital Projects & Technical Services VP.
● The Management Representative shall do but not limited to the following:
○ ensure that the processes needed for the PMM are established and
subsequently implemented and maintained.
○ report to the Capital Projects & Technical Services VP on all matters
regarding the PMM and advice on resources required to ensure its
ongoing effectiveness and efficiency.
○ organize management review meetings and all associated
paperwork.
○ ensure promotion of suitable awareness of the PMM throughout
relevant project stakeholders in the NWC business, Consultants and
Contractors.
○ liaise with external assessors, such as Government Auditors and
NPMO
Roles: Responsible: Capital Projects & Technical Services VP
Consulted: PMO GM
Informed: PMO GM
6.8 PMM-006-GOV-100 Management Review

6.8.1 Objective
The objective of this process is to ensure that accountable members of senior management
carry out a formal, objective, periodic review of the system.
6.8.2 Policies
1. Management review meetings must be scheduled by the PMO GM to take place once
every quarter.
2. The PMO GM must maintain a standard agenda for management review meetings.
See the (PMF-006-GOV-016 PMM Management Review Meeting Agenda).
3. The PMO GM must provide appropriate briefing materials in advance of each
scheduled management review meeting. See the (PMF-006-GOV-017 PMM
Management Review Briefing Paper).
4. All files and paperwork associated with the management review process must be
managed in accordance with process (PMM-006-GOV-060 Control of Project
Management Documents).
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6.8.3 Flowchart
Figure 6-9 PMM-006-GOV-100 Management Review Flowchart
6.8.4 Procedures
6.8.4.1 PMM-006-GOV-100-010 Compile a Briefing Paper and Agenda and Send an
Invitation for Management Review Meeting
Procedure: ● Use the (PMF-006-GOV-017 PMM Management Review Briefing Paper)

to develop PMM Management Review Briefing Papers.
● Use the (PMF-006-GOV-016 PMM Management Review Meeting
Agenda) to develop the PMM Management Review Meeting Agenda.
● Schedule the meeting, attaching the briefing paper and agenda.
● The attendees shall include Capital Projects & Technical Services GMs
and Cluster Projects GMs.
Roles:
Responsible: Center of Excellence Director
Accountable: PMO GM
Informed: Scheduled attendees
6.8.4.2 PMM-006-GOV-100-020 Attend the Management Review Meeting and

Implement the Agreed Action Plan
Procedure: ● Follow the agenda and cover all points of the briefing paper.
● Record all non-attendance.
● Use (PMF-006-GOV-018 PMM Management Review Meeting Minutes).
● Develop and distribute the meeting minutes using (PMF-014-COM-051
Standard Minutes of Meeting Template), requesting a read receipt.
● Start the actions and complete them by the due-date.
Roles: Responsible:
Action Owners
Accountable: PMO GM
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6.9 PMM-006-GOV-110 Human Resources Centralization

6.9.1 Objective
The objective of this process is to centralize the Projects Human Resource information to
enable ensuring that Project Team members are competent on the basis of appropriate
education, training, skills and experience.
6.9.2 Policies
1. A record of all Project Team members must be maintained as an up-to-date list for
each cluster by Cluster Projects GM. See the (PMF-013-HUM-002 Project Team
Members Register).
2. Project Management Manual PMM has been designed to ensure that the necessary
competence requirements for all Project Team roles are defined in Job Profiles, using
the template from the Human Resources department Procedures.
3. Project Team Members must have a formal induction and role-based training plan for
use of the PMM. Feedback must be gathered on PMM-based induction and training.
See the Feedback Form for PMM Induction and Training.
4. A central register of all inductions and role-based training events must be retained
and continually be updated. See (PMF-013-HUM-003 Induction and Training
Register).
6.9.3 Flowchart
Figure 6-10 PMM-006-GOV-110 Human Resources Centralization Flowchart
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6.9.4 Procedures
6.9.4.1 PMM-006-GOV-110-010 Maintain a Centralized Register of Project Team
Members History
Procedure: ● Based on updated registers of project team members history at projects

which used (PMF-013-HUM-002 Project Team Members Register) and
provided from the clusters Projects, consolidate the provided information
into a central register.
● Keep the centralized register up to date.
Accountable: PMO GM
Cluster Projects GM
Consulted:
Cluster PMO Manager
PMO GM
Informed:
Cluster Projects GM
Cluster PMO Manager
6.9.4.2 PMM-006-GOV-110-020 Maintain a Centralized Register of Inductions and
Trainings
Procedure: ● Based on updated registers of inductions and trainings at projects which

used (PMF-013-HUM-003 Induction and Training Register) and provided
from the clusters Projects, consolidate the provided information into a
central register
● Keep the centralized register up to date.
Accountable: PMO GM
Cluster Projects GM
Consulted:
Cluster PMO Manager
PMO GM
Informed:
Cluster Projects GM
Cluster PMO Manager
6.9.4.3 PMM-006-GOV-110-030 Review Performance Appraisal Records for
Continual Improvement Opportunities
Procedure: ● Based upon the performance appraisal records, identify possible

strengths and weaknesses in PMM.
● Record the review for Continuous Improvement purpose.
Roles: Responsible: Continuous Improvement lead
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Cluster Projects GM
Consulted:
Cluster PMO Manager
PMO GM
Informed:
Cluster Projects GM
Cluster PMO Manager
6.10 PMM-006-GOV-120 Infrastructure

6.10.1 Objective
Infrastructure is defined as “system of facilities, equipment and services needed for the
operation of an organization”. It includes the following:
● Buildings.
○ Corporate Headquarters
○ Cluster Offices
○ Construction site offices
● Workspace.
○ Desk/office-based
○ Construction site-based
● Associated utilities.
○ Office furniture
○ Office supplies
○ Public utilities (electricity, water and sewerage)
○ Building material supplies
○ Fuel supplies
● Process equipment.
○ Telecommunications equipment
○ Printers, faxes, scanners, plotters
○ Computers and computer software
○ Tools and machinery (plant)
○ Equipment for monitoring and measurement
The objective of this process is to ensure that essential items are in place throughout the
Kingdom to support effective and efficient use of the project management system by each and
every Cluster on each and every project.
6.10.2 Policies
1. Infrastructure providers must be approved to be placed on the Approved Supplier List
and must be periodically re-assessed in order to remain on the list.
2. The Cluster projects GM must monitor the infrastructure requirements, in relation to
project management system performance, and must co-ordinate with the
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Procurement Dept. to ensure that essential infrastructure items are available as and
when required.
3. Threats to continuity of project delivery through failure of infrastructure must be
evaluated and mitigated by the Cluster projects GM, in close coordination with the
Procurement Dept. and the Cluster Risk Section Head.
4. Observed defects within the infrastructure must be recorded using the Non-
Conformance reporting system during the course of carrying out internal audits.
6.10.3 Flowchart
Figure 6-11 PMM-006-GOV-120 Infrastructure Flowchart
6.10.4 Procedures
6.10.4.1 PMM-006-GOV-120-010 Keep Local Infrastructure Requirements Under
Review
Procedure: ● Infrastructure problems must be included in project risk registers and

must be communicated to the Cluster Projects GM to resolve, who may
consider escalating them if necessary.
Roles: Responsible: Cluster Risk Section Head
Accountable: Cluster Scheduling & Control Manager
Consulted: Cluster Projects Team
6.10.4.2 PMM-006-GOV-120-020 Ensure Suppliers Are Qualified to the Approved

Suppliers List
Procedure: ● Follow the Supply Management Policy and Procedure Manual.

● Ensure infrastructure equipment suppliers and service providers are
qualified to the Approved Suppliers List.
● Provide feedback about the performance of infrastructure equipment
suppliers and service providers.
Roles: Responsible: Cluster Contracts Administration Section Head
Accountable: Cluster Contracts Administration Section Head
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Consulted: Cluster Supply Chain Manager
Informed: Cluster Supply Chain Manager
6.11 PMM-006-GOV-130 Work Environment

6.11.1 Objective
Work environment is defined as “set of conditions under which work is performed including
physical, social, psychological and environmental factors (such as temperature, recognition
schemes, ergonomics and atmospheric composition)”.
Two distinct types of work are carried out in the business:
● Desk-based - not physical, although subject to risks of poor ergonomic design and/or
display screen equipment usage
● Construction site-based - exposed to risks of travel, high temperature, high humidity
and construction hazards
The objective of this process is to ensure that all Project Team members are comfortably able
to work to according to the policies and procedures of the PMM regardless of their work
location.
6.11.2 Policies
1. “Soft” aspects of the work environment, such as social welfare, cultural respect, career
development, recognition of outstanding work and commitment, etc. are also essential
to the effective and efficient conduct of the business.
2. The characteristics of a good work environment must be managed proactively by
responsible managers, to be enjoyed as a right by all staff.
3. Observed defects within the work environment must be recorded using the Non-
Conformance reporting system during the course of carrying out internal audits.
6.11.3 Flowchart
Figure 6-12 PMM-006-GOV-130 Work Environment Flowchart
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6.11.4 Procedures
6.11.4.1 PMM-006-GOV-130-010 Keep Local Work Environment Under Review
Procedure: ● Work environment problems shall be monitored and communicated to

the Corporate Governance & Risk Manager, who may consider
escalating them if necessary.
● During any internal audit or inspection, record and report all witnessed
problems with the work environment.
Roles: Responsible:
Business Unit Safety Section Head
Audit Team
Consulted: Cluster Projects Team
Informed: Corporate Governance & Risk Manager
6.12 PMM-006-GOV-140 PMM User Feedback

6.12.1 Objective
The objective of this process is to ensure that the PMM users are provided with a channel for
giving their feedback on any aspect of PMM.
6.12.2 Policies
1. Both verbal and written feedback from a PMM user must be accepted, logged,
escalated if needed, subjected to remedial action and/or response, reviewed and then
formally closed. See the (PMF-006-GOV-023 PMM user feedback Record) and (PMF-
006-GOV-024 PMM user feedback Register).
2. Feedback can be unsolicited (i.e. volunteered at any time by a PMM user) or may be
solicited through survey/Questionnaire.
3. Positive and negative feedback are welcomed. Both types represent opportunities to
improve the PMM.
4. The Center of Excellence Director must run a user survey at least once per year. The
survey must solicit both positive and negative feedback from PMM users. The results
of the survey must be disseminated.
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6.12.3 Flowchart
Figure 6-13 PMM-006-GOV-140 PMM user feedback Flowchart
6.12.4 Procedures
6.12.4.1 PMM-006-GOV-140-010 Run Online Semi-Annual PMM Surveys
Procedure: ● Run semi-annual PMM survey to measure PMM effectiveness using

(PMF-006-GOV-039 Semi Annual Survey - PMM Effectiveness).
● Run semi-annual PMM survey to collect feedback on PMM contents
using (PMF-006-GOV-040 Semi Annual Survey - PMM Contents).
Roles:
Responsible: Continuous Improvement Lead
Consulted: PMO GM
Informed: PMM User Feedback Initiator
6.12.4.2 PMM-006-GOV-140-020 Submit PMM users Feedback
Procedure: ● Complete the online PMM survey.

● PMM users shall use (PMF-006-GOV-023 PMM user feedback Record)
to identify PMM enhancement opportunities.
● PMM users feedback record form can be filled and submitted at any time.
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Roles:
Responsible: PMM User Feedback Initiator
6.12.4.3 PMM-006-GOV-140-030 Register and Analyze the PMM Users Feedback
Procedure: ● Analyze the online PMM survey feedback.

● Use (PMF-006-GOV-024 PMM user feedback Register) to record all
PMM users’ feedback.
● Analyze the PMM users’ feedback.
● Update (PMF-006-GOV-023 PMM user feedback Record) with the
responses and send back to originator.
● Keep the register up-to-date.
Roles: Responsible: Continuous Improvement Lead

PMO GM
Consulted:
PMM User Feedback Initiator
PMO GM
Informed:
PMM User Feedback Initiator
6.13 PMM-006-GOV-160 PMM Internal Audit

6.13.1 Objective
The objective of this process is to proactively put in place a Kingdom-wide, systematic regime
where audits are formally scheduled, properly prepared for, routinely executed and reported
upon satisfactorily to a uniform, best-practice standard.
6.13.2 Policies
1. Best practice must be followed, “Guidelines for quality and/or environmental
management systems auditing”.
2. All projects must be treated as unique, requiring a unique Project Management Plan
(PMP) to be created from the Project Management Manual and suitably customized
to meet the specific project requirements.
3. All PMPs for ongoing projects are considered to be part of the overall Project
Management System and are therefore bound by the rules of PMM.
4. The process of project customization is a highly focused exercise and must be
completed as part of the Feasibility stage by the NWC Project Manager upon his
appointment to the project.
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5. The approved PMP constitutes the main audit criterion for all internal, project-based
audits.
6. The full, correct and approved completion of project planning is a vital milestone and
shall be subject to internal audit as verification of the project’s readiness to move
beyond the Feasibility study into the execution stages of Design and Construction.
7. Thereafter, the two supporting management plans (Design Management Plan by the
Design Consultant and Construction Management Plan by the Contractor) also
become criteria for subsequent audits.
8. Projects must be added to the PMM Internal Audit Schedule by the Quality Assurance
Director. See (PMF-006-GOV-027 PMM Audit Schedule).
9. Internal audits must be structured, using standard checklist and report formats. See
(PMF-006-GOV-028 PMM Audit Checklist) and (PMF-006-GOV-029 PMM Audit
Report); also, (PMF-014-COM-013 Non Conformance Report NCR) and (PMF-006-
GOV-036 PMM NCRs Register).
10. Internal Audits must be led by authorized Lead Auditors and carried out by authorized
auditors.
11. The Quality Assurance Director must create and maintain a central register of Lead
Auditors and Internal Auditors, providing assurance of competence to act in the role.
See (PMF-006-GOV-030 PMM Auditors Register).
12. Lead Auditors and Internal Auditors must actively participate in at least one internal
audit per quarter in order to remain on the register.
13. The Quality Assurance Director must oversee the evaluation of performance by Lead
Auditors and Internal Auditors.
14. Ability to act as a Lead Auditor or Internal Auditor should be recorded favorably during
the performance appraisal of staff and must be encouraged as a means to support
career progression within NWC.
15. In line with best practice, follow-up audits should be scheduled in order to verify that
corrective and preventive actions have been documented, approved, implemented
and monitored for effectiveness
6.13.3 Flowchart
Figure 6-14 PMM-006-GOV-160 Internal Audit Flowchart
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6.13.4 Procedures
6.13.4.1 PMM-006-GOV-160-010 Develop Cluster Internal Audit Schedule
Procedure: ● Schedule audits on application of project management plans and PMM

processes.
● Use the (PMF-006-GOV-027 PMM Audit Schedule).

Related NWC Project Managers
Consulted:
Related Cluster Projects Functional Managers
Audit team
Informed:
NWC Project Manager
Cluster Projects GM
Audit team
6.13.4.2 PMM-006-GOV-160-020 Prepare and Carry Out the Internal Audit
Procedure: ● Prepare for and conduct the audit.

● Official notification of the audit date and audit criteria shall be provided
to the NWC Project Manager two weeks in advance of the audit.
● The date may be changed by NWC Project Manager at this point, within
reason, but the audit may not be cancelled.
● The audit criteria must include the relevant second party plan(s) and the
NWC Project Management Plan.
● Use the following:
○ (PMF-006-GOV-028 PMM Audit Checklist).
○ (PMF-006-GOV-029 PMM Audit Report).
○ (PMF-014-COM-013 Non Conformance Report NCR).
● The audit report is a draft at this stage.
Roles: Responsible: Audit Team
Accountable: Cluster QA Section Head

NWC Project Manager
Consulted:
NWC Project Team
Design Consultant Team
Supervision Consultant Team
Contractor Team
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NWC Project Manager

Informed:
NWC Project Team
Contractor Team
6.13.4.3 PMM-006-GOV-160-030 Agree the Audit Findings and Recommendations and
Issue Final Report
Procedure: ● Agree the audit findings with the auditees.

● Finalize the (PMF-006-GOV-029 PMM Audit Report).
● Update the (PMF-006-GOV-036 PMM NCRs Register) if a PMM NCR is
issued.
● Raise the Audit Report and all related documents to the Quality
Assurance Director and provide the auditee with a copy.
● In the case of proposed corrective and preventive actions, it is important
to consider possible effects on other projects within the program.
● Agree Schedule for Follow up.
Roles: Responsible: Audit Team
Accountable: Cluster QA Section Head

NWC Project Manager
Consulted:
NWC Project Team
Contractor Team
Informed:
NWC Project Manager
Cluster Projects GM
6.14 PMM-006-GOV-170 Monitoring Application of PMM Processes

6.14.1 Objective
The objective of this process is to maintain a defined set of KPIs and be able to
monitor/measure and report against the KPIs at the defined frequency of each KPI.
6.14.2 Policies
1. PMM application on NWC Capital Projects by all PMM practitioners is mandatory.
2. It is not allowed for all PMM practitioners in capital projects to make any changes on:
i. Project Management Manual contents such as processes, procedures, policies,
flowcharts or KPIs.
ii. Project Management Manual attachments such as forms, templates or
guidelines.
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3. In case of existence of a violation of PMM processes, procedures or forms, the Capital

Projects & Technical Services VP shall form an investigation committee to investigate
on the committed violation considering the following:
i. The request to form an investigation committee (PMF-006-GOV-041
Investigation Committee Forming Request) shall be raised by the concerned GM
nominating committee members.
ii. The duration of committee work shall be identified by Projects and Technical VP.
iii. The committee is responsible for:
a. investigating the violation.
b. developing an investigation report that includes recommendations.
c. raising the investigation report to Capital Projects & Technical Services VP
to take required actions.
4. Each section of the manual has its own set of defined KPIs.
5. Feedback on project management system performance must be provided to Project
Teams via the periodic gathering and reporting of performance measurements and
other Project Management monitoring data, principally through a monthly KPI report.
See the (PMF-006-GOV-015 KPI Report).
6. The KPIs Lead in the Corporate HQ must consolidate and report the KPI data
obtained from the Clusters and must ascertain the underlying reasons for any missing
or unsatisfactory data.
7. The KPI report and its underlying trends must be discussed at all scheduled
management review meetings.
6.14.3 Flowchart
Figure 6-15 PMM-006-GOV-170 Monitoring & Measurement of PMM Processes Flowchart
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6.14.4 Procedures
6.14.4.1 PMM-006-GOV-170-010 Apply Appropriate Resources to Gather PMM
Process data
Procedure: ● Ensure availability of resources (expertise, time, equipment) to gather

the required data at the required frequency, according to (PMF-006-
GOV-015 KPI Report).
Consulted: NWC Project Managers

Cluster Projects GM
Informed:
KPIs Lead
6.14.4.2 PMM-006-GOV-170-020 Develop the KPI Report at Cluster Level
Procedure: ● As per timing of every KPI, formally gather the required data from proper
sources at clusters and HQ to apply PMM KPIs.
● Use the (PMF-006-GOV-015 KPI Report) to develop the KPI Report on
monthly basis.
● Justify for every missing data and/or unsatisfactory data from the Cluster.

Cluster Projects GM
Informed:
KPIs Lead
6.14.4.3 PMM-006-GOV-170-030 Consolidate All Cluster Reports into a Single Report
Procedure: ● Receive KPI Reports from all cluster and consolidate them into one
report.
● Review the provided reasons of missing and/or unsatisfactory data.
● Review the description of corrective actions already in-hand.
● Analyze the reports to identify common trends across clusters and
benchmarking between clusters.
● This procedure to be performed on monthly basis.
Roles: Responsible: KPIs Lead
Accountable: Monitoring Section Head
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Consulted: PMO GM
Capital Projects & Technical Services GMs
Informed:
6.14.4.4 PMM-006-GOV-170-040 Escalate Issues and Publish Final KPI Report
Procedure: ● Review projects and cluster issues with the relevant Cluster Projects GM
and agree with them any action plans and escalation requirements.
● Escalate serious issues, trends and benchmarking problems to the
Capital Projects & Technical Services VP and Cluster Senior GM.
● Record all referrals and escalations as part of the consolidated KPI
Report.
● Agree with the PMO GM which report elements should be published,
including or excluding referrals and escalations (which may be sensitive
for a variety of reasons).
● Publish the agreed, final KPI Report to HQ and Clusters.
● This procedure to be performed on monthly basis.
Roles: Responsible: Monitoring Section Head
Accountable: PMO GM

Informed:
Cluster Senior GM
6.15 PMM-006-GOV-180 Stage Gate Review

6.15.1 Objective
The objective of this process is to ensure that projects progressively deliver the intended
assets, within the key target parameters of Schedule, cost, quality and HSE. Formal stage gate
reviews are mandated for the purpose of providing the required assurance in a progressive
manner.
6.15.2 Policies
1. All projects must be subjected to a formal stage gate review at the end of each stage
in the project lifecycle.
2. The project must successfully pass through the stage gate before officially
commencing the next stage. However, the Testing & Commissioning stage may be
included inside the construction stage and construction stage gate review.
3. Stage gate reviews must be scheduled, notified, well-attended and fully documented,
using (PMF-006-GOV-037 Stage Gate Review Checklist).
4. The principles of processes “PMM-014-COM-120 Perform Design Performance
Reporting” and “PMM-014-COM-130 Perform Construction Performance Reporting”
must be included in monthly progress reports and internal audits. These activities give
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the bottom-up view of progress towards asset delivery, whereas the stage gate
reviews give the top-down assurance that all risks and issues were adequately
addressed whilst the reported progress was being achieved.
6.15.3 Flowchart
Figure 6-16 PMM-006-GOV-180 Stage Gate Review Flowchart
6.15.4 Procedures
6.15.4.1 PMM-006-GOV-180-010 Notify the Cluster Projects GM by Project Stage
Completions before Two Months
Procedure: ● Make two months forecast based upon the latest approved updated
project schedule and the forecast dates for stage completions.
● If the two months forecast expects the stage completion within, send
notification to scheduled attendees (as per “2.2.2 Gate Committee”) and
Cluster Projects GM for a stage gate review.
● One month later remind all parties about this notification.
Roles: Responsible: Cluster Scheduling Section Head
Consulted: NWC Project Manager
Informed: Scheduled attendees of Stage Gate Review meetings
6.15.4.2 PMM-006-GOV-180-020 Compile Objective Evidence of Stage Completion
Procedure: ● Liaise with the NWC Project Manager, and other parties as needed to
compile objective evidence of stage completion.
● Use the (PMF-006-GOV-037 Stage Gate Review Checklist).
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Roles: Responsible: NWC Project Document Controller
Accountable: NWC Project Manager
6.15.4.3 PMM-006-GOV-180-030 Compile an Agenda and Send a Meeting Notification

for the Stage Gate Review Meeting
Procedure: ● Complete the agenda section of the (PMF-006-GOV-037 Stage Gate

Review Checklist).
● Schedule the meeting attaching the agenda.
● Attendees Acknowledge the meeting notification and study the agenda.
● The attendees shall be as a minimum:
○ Gate Keeper: The Business Unit Construction Director.
○ Gate Coordinator : The NWC Project Manager.
○ Functional Managers of:
- Cluster Technical Services Department.
- Cluster Project Scheduling & Control Department.
- Cluster Strategic Planning Department.
- Cluster Asset Management & Operation Excellence department

NWC Project Team
Consulted:
Contractor Team
Informed: Scheduled attendees of Stage Gate Review meetings
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6.15.4.4 PMM-006-GOV-180-040 Conduct the Meeting and Compile Minutes for the
Stage Gate Review Meeting
Procedure: ● Conduct the Stage Gate Review meeting following the agenda.
● The NWC Project Manager must record all non-attendance and any poor
or negative participation.
● Use the meeting record section of the (PMF-006-GOV-037 Stage Gate
Review Checklist) and record all required actions.
● Develop and distribute the Meeting Minutes using (PMF-014-COM-051
Standard Minutes of Meeting Template).
● Update the (PMF-006-GOV-038 Stage Gate Review Register).

NWC Project Document Controller
Consulted:
Scheduled attendees
Scheduled Attendees
Informed:
6.15.4.5 PMM-006-GOV-180-050 Acknowledge the Minutes and Initiate Actions by the
Due Date
Procedure: ● Receive the Minutes and start the actions and complete them by the due
dates.
Roles: Responsible: Action Owner
Accountable: Action Owner

Informed:
Cluster Projects GM
6.15.4.6 PMM-006-GOV-180-060 Formally Approve the Project Stage Completion
Procedure: ● Check if all actions are completed using the (PMF-006-GOV-037 Stage
Gate Review Checklist).
● Once all actions are completed, formally approve the project stage
completion.
● Update the (PMF-006-GOV-038 Stage Gate Review Register) which is
for cluster level.
● Inform Scheduling & Control GM and PMO GM by the updated (PMF-
006-GOV-038 Stage Gate Review Register).
Roles: Responsible: Business Unit Construction Director
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NWC Project Manager
Consulted:
Scheduled attendees
Informed:
PMO GM
6.16 PMM-006-GOV-190 Project Management Data Analysis

6.16.1 Objective
The objective of this process is to systematically collect and analyze various types of data from
the Project Management, to evaluate the suitability and effectiveness of PMM, and to evaluate
the potential areas where PMM improvements can be made.
6.16.2 Policies
1. Useful data types include:
● Results of inspection and test activities.
● Results of internal audit activities.
● Reviewing of Non Conformance Reports
○ For underlying performance trends.
○ For root causes indicating potential supply chain problems.
○ For identification of opportunities to be disseminated across all clusters’
information regarding corrective and preventive actions for the mutual
benefit and improvement of all.
● Results of PMM User Feedback
○ Through structured surveys.
○ Through verbal and written statements, both positive and negative in
nature.
● KPI data from each manual section
2. An important outcome of the data analysis activities outlined above is to refer
problems with unacceptable performance, including missing data, directly back to the
data owner and process owner.
3. All such referral instances must be recorded by the Center of Excellence Director and
monitored for satisfactory closure, including the respondent’s given explanation.
4. All referrals and closure routines must be reviewed in periodic management review
meetings.
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6.16.3 Flowchart
Figure 6-17 PMM-006-GOV-190 Project Management Data Analysis Flowchart
6.16.4 Procedures
6.16.4.1 PMM-006-GOV-190-010 Review the Project Management Registers and KPI
Reports
Procedure: ● On semi-annual basis, review the Project Management registers and KPI
reports.
● Relevant Project Management registers include:
○ (PMF-006-GOV-012 Local Work Instruction Register).
○ (PMF-013-HUM-002 Project Team Members Register).
○ (PMF-013-HUM-003 Induction and Training Register).
○ (PMF-006-GOV-024 PMM User Feedback Register).
○ (PMF-006-GOV-025 Monitoring and Measuring Equipment
Register)
○ (PMF-006-GOV-030 PMM Auditors Register).
○ (PMF-006-GOV-033 PMM Improvement Register).
○ (PMF-006-GOV-034 PMM Corrective and Preventive Action
Register).
○ (PMF-006-GOV-036 PMM NCRs Register).
○ (PMF-006-GOV-038 Stage Gate Review Register).
● Review the monthly (PMF-006-GOV-015 KPI Report).
● Consider interfaces with other NWC management systems (e.g. with
Supply Chain department management policies and procedures).
● Make a written note of all perceived strengths and weaknesses, for
potential inclusion in the next PMM management review briefing paper.
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Roles: Responsible: Continuous Improvement Specialist

KPIs Lead
Consulted:
Center of Excellence Lead
PMO GM
Informed:
6.16.4.2 PMM-006-GOV-190-020 Review External Factors for Opportunities and
Threats
Procedure: ● On semi-annual basis, review external factors for opportunities and

threats.
● Use the (PMF-006-GOV-005 External Requirements Tracking Register).
● Consider opportunities and threats presented by the changing of external
requirements.
● Recommend any perceived opportunities and threats, for inclusion in the
next PMM review briefing paper.
Roles: Responsible: Continuous Improvement Specialist

KPIs Lead
Consulted:
Center of Excellence Lead
PMO GM
Informed:

The table below identifies the KPIs of Project Governance Management. The NWC Project
Table 6-1 Project Governance Management KPIs
Reporting Green Yellow Red

# Detail Measurement
Frequency Threshold Threshold Threshold
15 days 30 days > 30 days

Publishing an EEF calendar calendar calendar
One published written
1 & OPA Review Monthly after after after
report.
Report schedule schedule schedule
d date d date d date
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Percentage of number
of workshops conducted
in a project with
O&M experts attendance of O&M
participation in experts from Asset
2 Quarterly 1 90% < 90%
workshops of a Management &
project Operation Excellence to
total workshops
conducted in the
projects.
Percentage of number
of design reviews and
approvals in a project in
O&M experts
participation by O&M
participation in
experts from Asset
3 design reviews and Quarterly 1 90% < 90%
Management &
approvals in a
Operation Excellence to
project
the total number of the
conducted design
reviews in the project.
Number of PMM
PMM NCRs in a
4 application NCRs in a Monthly 0 3 >3
project in a month
project.
Number of PMM
PMM NCRs in a
5 application NCRs in a Monthly 0 12 > 12
cluster in a month
cluster.
PMM NCRs in a Number of open PMM

6 project year-to- application NCRs in a Monthly 0 3 >3
date project year-to-date.
PMM NCRs in a Number of open PMM

7 cluster year-to- application NCRs in a Monthly 0 12 > 12
date cluster year-to-date.

Formally recorded MOM calendar calendar calendar
PMM review
8 of PMM review meeting Monthly after after after
meetings at HQ
at HQ in a year. schedule schedule schedule
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Percentage of year-to-
date number of
performed PMM
PMM inductions in
9 inductions in a project to Quarterly 1 90% < 90%
a project
total required/planned
PMM Inductions in the
project.
date number of role-
Role-based based trainings in a
10 trainings in a project to total Quarterly 1 90% < 90%
project required/planned role-
based trainings in the
project.
date number of
Performance
performed appraisals in
11 appraisals in a Quarterly 1 90% < 90%
a project to total
project
required/planned PMM
appraisals in the project.
Year-to-date number of
Work environment
12 work environment NCRs Quarterly 0 4 >4
NCRs in a cluster
in a cluster

PMM effectiveness Formal PMM calendar calendar calendar
13 survey to PMM effectiveness survey to Monthly after after after
users by COE PMM users by COE schedule schedule schedule

PMM contents Formal PMM contents calendar calendar calendar
14 survey to PMM survey to PMM users by Monthly after after after
users by COE COE schedule schedule schedule
For the current month,

the percentage of
Audits conducting number of unperformed
15 in a cluster in a scheduled audits in a Monthly 0 90% > 90%
month cluster to the total
scheduled audits in the
cluster.
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date number of
Year-to-date audits unperformed scheduled
16 conducting in a audits in a cluster to the Monthly 0 90% > 90%
cluster year-to-date total
scheduled audits in the
cluster.
Unreported KPIs For the current month,

17 per month in a number of unreported Monthly 0 3 >3
project KPIs in a project.
Unreported KPIs For the current month,

18 per month in the number of unreported Monthly 0 9 >9
cluster KPIs in the cluster.
Year-to-date Year-to-date number of

19 unreported KPIs in unreported KPIs in the Monthly 0 15 > 15
the cluster cluster.

"RED" KPIs per
20 number of "RED" KPIs in Monthly 0 3 >3
month in a project
a project.
"RED" KPIs per For the current month,

21 month in the number of "RED" KPIs in Monthly 0 9 >9
cluster current in the cluster.
Year-to-date Year-to-date number of

22 "RED" KPIs in the "RED" KPIs in the Monthly 0 15 > 15
cluster cluster.
Projects continue
projects continue
23 without stage gate Monthly 0 3% > 3%
without stage gate
reviews
reviews.
Number of calendar
Time taken to
days elapsed since the
perform stage gate
24 stage gate review Monthly 14 28 > 28
review activities in
meeting to the stage
a project.
decision in a project.
6.18 Attachments
GEN Project Governance Management).
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Table 6-2 Project Governance Management forms, templates and guidelines
Document No. Title
EPM-ID0-PR- Project Standard Document Numbering Procedure

000002
PMF-006-GOV-002 PMM Review Checklist
PMF-006-GOV-003 EEF & OPA Review Report
PMF-006-GOV-005 External Requirements Tracking Register
PMF-006-GOV-006 PMM Document Numbering System
PMF-006-GOV-008 Document Filing Index
PMF-006-GOV-009 Archival Instruction
PMF-006-GOV-010 Archival Instruction Register
PMF-006-GOV-011 Local Work Instruction
PMF-006-GOV-012 Local Work Instruction Register
PMF-006-GOV-013 Delegation of Authority Record
PMF-006-GOV-015 KPI Report
PMF-006-GOV-016 PMM Management Review Meeting Agenda
PMF-006-GOV-017 PMM Management Review Briefing Paper
PMF-006-GOV-018 PMM Management Review Meeting Minutes
PMF-006-GOV-023 PMM User Feedback Record
PMF-006-GOV-024 PMM User Feedback Register
PMF-006-GOV-027 PMM Audit Schedule
PMF-006-GOV-028 PMM Audit Checklist
PMF-006-GOV-029 PMM Audit Report
PMF-006-GOV-030 PMM Auditors Register
PMF-006-GOV-032 PMM Improvement Request
PMF-006-GOV-033 PMM Improvement Register
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Document No. Title
PMF-006-GOV-034 PMM Corrective and Preventive Action Register
PMF-006-GOV-036 PMM NCRs Register
PMF-006-GOV-037 Stage Gate Review Checklist
PMF-006-GOV-038 Stage Gate Review Register
PMF-006-GOV-039 Semi Annual Survey - PMM Effectiveness
PMF-006-GOV-040 Semi Annual Survey - PMM Contents
PMF-006-GOV-041 Investigation Committee Forming Request
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Section 7 - Project Integration Management
Section 7 - Project Integration

Management
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History Page

12/01
● The process “PMM-007-INT-015 Plan Integration Management” is added.
● The process “PMM-006-INT-020 Develop the Project Management Plan” is revised.
● The process “PMM-007-INT-023 Site Handover to Contractor and Consultant Work
Commencement” is transferred from Procurement section and revised.
Change
Description ● The process “PMM-007-INT-026 Conduct Project Kick Off Meeting” is transferred
from Procurement section and revised.
● The process “PMM-007-INT-060 Integrated Change Control” is revised.
● The process “PMM-007-INT-070 Close the Project” is revised.
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06/02
This section is developed as an update to “Integration” section in first version the

● Adding procedures and template for project charter.
● Remove the process of develop the project scope statement and incorporate its
content in scope section.
● Adding procedure and templates for developing the following from Mashroat
White Book:
○ Land acquisition strategy
Change
Description ○ Stakeholder engagement Plan
○ Permitting Plan
● Adding new process of manage project knowledge.
● Adding lessons learned register template.
● Adding additional procedure to clarify the Variation Control process.
● Updating Responsibilities as per NWC organization charts.
● Updating and creating new flowcharts for processes and procedures.
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7 Project Integration Management

The subject of this particular section of the Project Management Manual (PMM) is Project Integration
Management.
The high-level process map for Project Integration Management is illustrated below in Figure 7-1:
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Figure 7-1 High-Level Process Map for Project Integration Management
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7.1 PMM-007-INT-010 Develop the Project Charter

7.1.1 Objective
The objective of this process is to develop a document that formally authorizes the existence
of the project and provides the Project Manager with the authority to apply organizational
resources to the project activities. It provides direct link between the project and the strategic
objectives of NWC and shows the organizational commitment to the project.
The business case is the main source for information about the project’s objectives and how
the project will contribute to the business goals.
Business case is developed by the project requester and Cluster Strategic Planning Manager
in the Five-Year Projects Portfolio Planning, in collaboration with the Cluster Technical
Services and Projects Control teams regarding scope, Schedule, cost, quality, risk and
procurement strategy. Refer to the Five-Year Projects Portfolio Planning Section. Strategic
Planning includes a formal risk management workshop as part of business case development.
7.1.2 Policies
1. Every project is unique and must have its own Project Charter.
2. The Approved Business Case shall be the key data source for the Project Chatter.
3. Project Charter must identify the project manager in name. However, it is
recommended to identify him as earlier as possible.
7.1.3 Flowchart
Figure 7-2 PMM-007-INT-010 Develop the Project Charter Flowchart
7.1.4 Procedures
7.1.4.1 PMM-007-INT-010-010 Develop the Project Charter
Procedure: ● Review Project information from the Business Case document.

● Update existing information and collect new information as needed to
create the Project Charter.
● Use (PMF-007-INT-014 Project Charter) to develop the project charter.
Roles: Responsible:
NWC Project Manager (if assigned)
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Consulted:
Cluster Projects GM
Informed:
Director
PMO GM
7.1.4.2 PMM-007-INT-010-020 Approve the Project Charter
Procedure: ● Review the information included in the project Charter.

● Consult with the Cluster Projects Team as necessary.
● Discuss with the project Manager.
● Approve and Sign the Project Charter.

NWC Project Manager
Consulted:
Informed:
Director
PMO GM
NWC Project Manager
7.2 PMM-007-INT-015 Plan Integration Management
7.2.1 Objective
The objective of this process is to establish a consistent guide to properly plan and perform the
integration processes by NWC, Design Consultant, and Contractor. Integration process widely
impact all project process, so the preparation of the Integration Management Plan section in
the Project Management Plan PMP must be with high care and focus.
7.2.2 Policies
1. Each project must have a separate section for Integration Management in the Project
Management Plan, created by the NWC Project Manager and used as the guiding
document for internal and external staff throughout the project.
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2. The approved Project Management Plan, including the Integration Management Plan
section, must be included in the tender document when NWC is procuring Second
Party services and products in support of project execution.
3. Second Parties must create their own Integration Management Plan sections for the
project as part of their contract mobilization work. These Integration Management
Plan Sections must be approved by NWC during mobilization period.
4. The Integration Management Plans in PMPs of NWC, Design and Construction must
be kept up-to-date throughout the project life cycle.
5. Planning for Integration must be specific and unique to the location, activities and
characteristics of the project. It must not be generic or wholesale copy-and-paste from
previous projects, else it will be rejected and the work will not be allowed to proceed.
7.2.3 Flowchart
Figure 7-3 PMM-007-INT-015 Plan Project Integration Management Flowchart
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7.2.4 Procedures
7.2.4.1 PMM-007-INT-015-010 Develop the Integration Management Plan Section of
the Project Management Plan
Procedure: ● The NWC Project Manager shall use (PMF-007-INT-001 Project

Management Plan) to develop the Project Management Plan which
includes a dedicated section for Integration management.
● Update the Project Integration Section throughout the lifecycle with the
approved changed using procedure (PMM-007-INT-020-040 Update the
Project Management Plan Sections Based on Approved Variations).
● Ensure that only changes approved through (PMM-007-INT-060
Variation Control) process are implemented.

Cluster Projects GM
Consulted:
Cluster PMO Manager
Cluster PMO Manager
Informed:
Cluster Projects GM
7.2.4.2 PMM-007-INT-015-020 Approve the Integration Management Plan Section of
Project Management Plan
Procedure: ● Review and Approve the Integration Management Plan Section of

● Document and track the results of the reviews till they are closed out
satisfactorily.
● Approve the submitted Project Integration Management Plan Section.

NWC Project Manager
Consulted:
Cluster PMO Manager
Cluster PMO Manager
Informed:
NWC Project Manager
PMO GM
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7.2.4.3 PMM-007-INT-015-030 Ensure Integration Requirements and Technical

Evaluation are Included in the Design Tender Documents
Procedure: ● Ensure the up-to-date NWC Project Management Plan, with all approved
changes, is included in the design RFP.
● Ensure the requirement “The Design Consultant is required to create his
own Integration Management Plan and must submit it during the
contractual mobilization period” is stated in the NWC Project
Management Plan.
● Ensure that the technical evaluation criteria for submitted technical
proposals includes integration assessment criteria, which addresses:
○ the project requirements.
○ the past performance of the bidders.

Consulted:
Technical Evaluation Committee
Informed: Technical Evaluation Committee
7.2.4.4 PMM-007-INT-015-040 Develop Project Integration Management Plan Section

in the Project Design Management Plan
Procedure: ● Develop Project Integration Management Plan Section in the Project

Design Management Plan.
● Ensure that the Project Integration Management Plan Section in the
Project Design Management Plan is in alignment with the Project
Integration Management Plan Section in the NWC Project Management
Plan.
● Consult with NWC Project Manager and Cluster Technical Services
Director about the development of the Project Integration Management
Plan Section.
● Include the Project Integration Management Plan Section in the Project
Design Management Plan to be approved as part of the Project Design
Management Plan.
Roles: Responsible: Design Consultant

NWC Project Manager
Consulted:
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7.2.4.5 PMM-007-INT-015-050 Ensure Integration Requirements and Technical

Evaluation are Included in the Construction Tender Documents
changes, is included in the Construction RFP.
● Ensure the requirement “The Contractor is required to create his own
Integration Management Plan and must submit it during the contractual
mobilization period” is stated in the NWC Project Management Plan.
proposals includes integration assessment criteria, which addresses:

Consulted:
7.2.4.6 PMM-007-INT-015-060 Develop the Construction Integration Management

Plan Section
Procedure: ● Develop Project Integration Management Plan Section in the Project

Construction Management Plan.
● Ensure that the Project Integration Management Plan Section in the
Project Construction Management Plan is in alignment with the Project
Integration Management Plan Section in the NWC Project Management
Plan.
● Consult with NWC Project Manager and Supervision Consultant about
the development of the Project Integration Management Plan Section.
● Include the Project Integration Management Plan Section in the Project
Construction Management Plan to be approved as part of the Project
Roles: Responsible: Contractor

NWC Project Manager
Consulted:
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7.3 PMM-007-INT-020 Develop the Project Management Plan

7.3.1 Objective
The objective of this process is to proactively document how the project will be executed,
monitored, controlled and closed, and to communicate this information to all Project Team
members. From a corporate perspective, there should be one unified method of Project
Management Planning, which is used by all NWC Project Managers across the entire portfolio
projects.
7.3.2 Policies
1. Every project is unique and must have its own Project Management Plan, created
using (PMF-007-INT-001 Project Management Plan).
2. The Project Management Plan must be created by the NWC Project Manager in the
initial planning stage and must be approved by key stakeholders before use.
3. The Project Management Plan requirements or appropriate sections of the plan must
be part of the tender documents for the project.
4. The unique Project Management Plan is a living document, which must be reviewed
regularly and updated by the Project Manager (for further approval) as appropriate
throughout the project duration.
5. Project Management Plan can be updated after approval. Only changes that approved
through the process (PMM-007-INT-060 Variation Control) update the Project
Management Plan.
6. Updating the Project Management Plan at the end of each stage (prior the stage gate
review) is mandatory.
7. The Project Management Plan, by the NWC Project Manager, is the overarching plan
for the entire project lifecycle. It is supplemented to a high level of detail by two second
party management plans during relevant stages of the project:
● Design Management Plan, by the Design Consultant.
● Construction Management Plan, by the Contractor.
8. The unique Project Management Plan, Design Management Plan and Construction
Management Plan, form the basis for internal and external audits of the project.
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7.3.3 Flowchart
Figure 7-4 PMM-007-INT-020 Develop the Project Management Plan Flowchart
7.3.4 Procedures
7.3.4.1 PMM-007-INT-020-010 Develop the Project Initial Planning Documents,
Strategies and Plans
Procedure: ● Develop the following:

○ Land acquisition strategy. See procedure EPM-S00-PR-000009
Land Acquisition Strategy Guidelines and (PMF-007-INT-024 Land
Acquisition Strategy Form)
○ Project Stakeholder engagement plan. See procedure EPM-S00-
PR-000001 and (PMF-015-RIS-016 List of Potential Stakeholders).
○ Permitting Plan using (PMF-007-INT-016 Permitting Plan).
○ Knowledge Management Plan as per the process (PMM-007-INT-
040 Manage Project Knowledge) in this PMM.
● Add these documents to the Project Management Plan (PMP) as per
(7.2.4.2 PMM-007-INT-020-020 Develop the Project Management Plan)
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General Services GM
Consulted:
Informed:
Director
General Services GM
7.3.4.2 PMM-007-INT-020-020 Develop the Project Management Plan
Procedure: ● Collect the reviewed specialized sections of the Project Management

Plan (PMP) and consolidate them in an integrated PMP using (PMF-007-
INT-001 Project Management Plan).
● Ensure that the plan is applicable to the proposed type of contract for the
project, such as “Design bid Build” or “Design & Build”, as this determines
the relationship between the Design Management Plan and Construction
Management Plan, which will be used by the Second Parties.
● Submit the PMP along with the documents developed in procedure
“PMM-007-INT-020-010 Develop the project initial planning documents,
strategies and plans” to the Business Unit Construction Director for
approval using (PMF-014-COM-004 Document Approval Form).

Consulted:
Cluster Cost Control Section Head
Cluster HSSE Manager
Informed:
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7.3.4.3 PMM-007-INT-020-030 Approve the Project Management Plan and Project

Initial Planning Documents, Strategies and Plans
Procedure: ● Business Unit Construction Director shall:

○ review the Project Management Plan (PMP) and Project Initial
Planning Documents, Strategies and plans.
○ Ensure that, every section of the Project Management Plan is
reviewed and approved separately by the specialized at clusters as
per identified in each PMM section.
○ Document and track the results of the reviews till they are closed out
satisfactorily.
● Business Unit Construction Director, Cluster Scheduling & Control
Manager and Cluster Technical Services Director shall approve the
Project Management Plan (PMP) and Project Initial Planning
Documents, Strategies and plans.
Roles: Responsible:
NWC Project Manager
Consulted:
7.3.4.4 PMM-007-INT-020-040 Update the Project Management Plan Sections Based

on Approved Variations
Procedure: ● If the PMP is approved, changes to PMP shall be applied only in

response to approved Variation Orders. So, review the variation
documents and ensure the Variation Order approvals.
● Make formal updates to the PMP in response to Approved Variations at
the end of every stage.
● Ensure that PMP versions are correctly identified, with reference to
Approved Variations in the revision history table.
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Consulted:
Informed:
7.3.4.5 PMM-007-INT-020-050 Develop Design Management Plan
Procedure: ● Use the up-to-date PMP provided by the NWC Project Manager as an
input to develop the Design Management Plan.
● Design Consultant to use his own in-house processes and styles to
produce a project-specific Design Management Plan; but covering the
NWC PMP requirements as a minimum (or use the Design Management
Plan template provided by NWC in PMM).
● Submit the Design Management Plan for approval during the contractual
mobilization period.
Consulted: Cluster Technical Services Director

NWC Project Manager
Informed:
7.3.4.6 PMM-007-INT-020-060 Approve the Design Management Plan
Procedure: ● Review and approve the design management plan.

satisfactorily.
● The NWC Project Manager shall approve using (PMF-014-COM-004
Document Approval Form).
Roles: Responsible:
NWC Project Manager
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Design Consultant
Consulted:
Informed:
Design Consultant
7.3.4.7 PMM-007-INT-020-070 Update Section(s) of the Design Management Plan
Based on Approved Variations
Procedure: ● Make formal updates to the Design Management Plan in response to

Approved Variations.
● Ensure that plan versions are correctly identified, with an incremental
version identifier and reference to Approved Variations in the revision
history table.

NWC Project Manager
Informed:
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7.3.4.8 PMM-007-INT-020-080 Submit Construction Management Plan and Early

Deliverables
Procedure: ● Use the up-to-date PMP provided by the NWC Project Manager as an
input to develop the Construction Management Plan.
● Contractor to use his own in-house processes and styles to produce a
project-specific Construction Management Plan; but covering the NWC
PMP requirements as a minimum (or use the Construction Management
Plan template provided by NWC in PMM).
● The construction management plan along with project early submissions
shall be submitted during the mobilization period which include but not
limited to:
○ Quality Management plan
○ HSE management plan
○ Organizational Chart
○ Resumes of Key Positions
○ Staffing Plan
○ Risk Register
○ Stakeholder Register
○ Site Layout
○ Permitting Plan
● The submitted Construction Project Management Plan shall consider
performing:
○ PMM-011-COS-060-010 Develop and Submit Revised BOQ
○ PMM-011-COS-060-020 Approve Revised BoQ Submitted by
Contractor at Cluster
Contractor at HQ
Contractor at MEWA (if required)

NWC Project Manager
Consulted:
NWC Project Manager
Informed:
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7.3.4.9 PMM-007-INT-020-090 Approve the Construction Management Plan
Procedure: ● Review and approve the construction management plan.

satisfactorily.
Roles: Responsible:
NWC Project Manager
Contractor
Consulted:
Informed:
Contractor
7.3.4.10 PMM-007-INT-020-100 Update section(s) of the Construction Management
Plan Based on Approved Variations
Procedure: ● Make formal updates to the Construction Management Plan in response

to Approved Variations.
● Ensure that plan versions are correctly identified, with an incremental
version identifier and reference to Approved Variations in the revision
history table.

NWC Project Manager
Consulted:
NWC Project Manager
Informed:
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7.4 PMM-007-INT-023 Site Handover to Contractor and Consultant Work

Commencement
7.4.1 Objective
The objective of this process is to formalize a proper project site handover to Contractor and
adopt the site handover date as project start date. It also formalizes the work commencement
of Design/Supervision Consultant.
7.4.2 Policies
1. Every construction project must undergo a project site handover process to the
awarded Contractor within maximum 60 days from PO issuance with the condition the
contract is signed.
2. Every design or supervision project must undergo a consultant work commencement
meeting process to the awarded consultant maximum 60 days from PO issuance with
the condition the contract is signed.
3. Contractor/Consultant must formally nominate, by a letter, a representative to
participate in project site handing over committee / work commencement meeting.
4. The date of project site handover / work commencement meeting shall be considered
the project start date.
5. Project site handover report must be approved by the Cluster Projects GM and kept
by the NWC Project Document Controller .
6. Work commencement report must be raised to the Cluster Projects GM for information
and kept by the NWC Project Document Controller .
7. Mobilization period duration for every project shall be:
i. 8% of project duration for projects have a duration ≥ 12 months.
ii. 10% of project duration for projects have a duration < 12 months.
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7.4.3 Flowchart
Figure 7-5 PMM-007-INT-023 Site Handover to Contractor and Consultant Work Commencement
Flowchart
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7.4.4 Procedures
7.4.4.1 PMM-007-INT-023-010 Nominate a Presentative for Project Site Handover
Committee / Work commencement Meeting
Procedure: ● For construction projects:

○ After issuing the contract to Contractor, a letter to be sent to
Contractor requesting to nominate his representative for the Project
Site Handover Committee using (PMF-007-INT-028 Contractor
Representative Nomination Request for Site Handover).
○ To hand over the project site to a Contractor, if the Supervision
Consultant is previously assigned, another letter to be sent to the
Supervision Consultant requesting to nominate his representative
for the Construction Site Handover Committee.
○ Contractor shall send his nomination letters identifying his
representatives.
● For design or supervision projects:
○ After issuing the contract to Consultant, a letter to be sent to
Consultant requesting to nominate his representative for the work
commencement meeting using (PMF-007-INT-038 Consultant
Representative Nomination Request for Work Commencement
Meeting).
○ Consultants shall send his nomination letters identifying his
representatives.
NWC Project Manager
Roles: Responsible:
Cluster Projects GM
Consulted: Cluster Contracts Administration Section Head

Contractor
Informed:
Design Consultant
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7.4.4.2 PMM-007-INT-023-020 Form Project Site Handover Committee

○ After receiving the Contractor and Consultant (if assigned)
nominations, NWC Project Manager shall request from Cluster
Projects GM to form a project site handover committee including
representatives from:
- Projects department
- Representative of any related HQ/cluster department (as
required)
- Contractor
- Consultant
○ The Cluster Projects GM shall issue the administration order (PMF-
007-INT-029 Site Handover Committee Forming Decision) for site
handover committee formation within maximum 50 days from PO
issuance with the condition the contract is signed.
NWC Project Manager
Roles: Responsible:
Cluster Projects GM
Cluster Projects GM
Consulted:
Contractor
Informed:
Project Site Handover Committee
7.4.4.3 PMM-007-INT-023-023 Perform Site Visit to Handover the Site

○ The site handover shall be scheduled to be conducted maximum 60
days from PO issuance with the condition the contract is signed.
○ The committee shall conduct the scheduled site visit to handover the
site to the Contractor.
Roles: Responsible: Project Site Handover Committee

Cluster Projects GM
Consulted:
Contractor
Informed:
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7.4.4.4 PMM-007-INT-023-026 Conduct Work Commencement Meeting
Procedure: ● For design projects:

○ The work commencement meeting shall be scheduled to be enable
completion within 60 days from PO issuance with the condition the
contract is signed.
○ NWC Project Manager shall invite the:
- Cluster Technical Services Director (in design stage)
- Cluster Scheduling & Control Manager (in supervision projects)
- Representative of any related HQ/cluster department (as
required).
- Design/Supervision Consultant nominated representative
○ The invitees shall conduct the scheduled work commencement
meeting to:
- discuss, if any, issues may prevent commencing the work.
- sign the (PMF-007-INT-039 Work Commencement Report) or
(PMF-007-INT-040 Work Commencement Delay Report).
NWC Project Manager
Roles: Responsible:
Work Commencement Meeting Attendees

Cluster Projects GM
Informed:
Design/Supervision Consultant
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7.4.4.5 PMM-007-INT-023-030 Prepare and Issue Project Site Handover Report /

Work Commencement Report

○ The committee shall visit the project site to validate:
- The project site clearance as per stated in the contract and
Contractor technical proposal.
- The matching between the project site and the project site
layouts.
○ In case the Contractor attended the visit and no issues prevents the
project site handover were found, the committee shall prepare and
sign a project site handover report (PMF-007-INT-030 Site
Handover Report).
- The report may include reservations by any party.
- The report date shall be considered the project start date.
○ The Site Handover Report shall be approved by the Cluster Projects
GM.
○ The NWC Project Manager shall:
- upload the site handover report to ENJAZ system and update
the project status in ENJAZ system.
- inform Cluster Finance GM.
● For design/supervision projects:
○ In case the Consultant attended the work commencement meeting
and no issues prevents the work commencement were found, the
attendees shall prepare and sign a work commencement report
(PMF-007-INT-039 Work Commencement Report).
- The report may include reservations by any party.
- The report date shall be considered the project start date.
○ The Work Commencement Report shall be raised to the Cluster
Projects GM for information.
○ The NWC Project Manager shall:
- upload the site handover report to ENJAZ system and update
the project status in ENJAZ system.
- inform Cluster Finance GM.
● This procedure (whether construction, design, or supervision) shall be
completed within 60 days from PO issuance with the condition the
contract is signed.
Roles: Responsible:
Cluster Projects GM
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Cluster Projects GM
Consulted:
Supervision Consultant (for site handover)
Contractor
Informed:
Design Consultant
PMO GM
Cluster Finance GM
Cluster Supply Chain Manager
7.4.4.6 PMM-007-INT-023-040 Prepare and Issue the Project Site Handover Delay
Report / Work Commencement Delay Report and Arrange Issues Removal

○ In case the Contractor attended the visit and issues prevent the
project site handover were found, the committee shall prepare and
sign a project site handover delay report (PMF-007-INT-031 Site
Handover Delay Report). The report must indicate the issues.
○ The Site Handover Delay Report shall be approved by the Cluster
Projects GM within 60 days from PO issuance with the condition the
contract is signed.
○ After the project site handover delay report issuance, NWC project
manager shall escalate the issues to resolve them to enable project
site handing over to Contractor.
○ After issues removal, the process shall be restarted from (PMM-007-
INT-023-010).
○ In case the Design Consultant attended the work commencement
meeting and issues prevent the commencing every work in the
project were found, the attendees shall prepare and sign a
Commencement Delay Report (PMF-007-INT-040 Work
Commencement Delay Report). The report must indicate the issues.
○ The Commencement Delay Report shall be raised to the Cluster
Projects GM for information within 60 days from PO issuance with
the condition the contract is signed.
○ After the Commencement Delay Report issuance, the project
manager shall escalate the issues to resolve them to enable
Consultant Work Commencement.
○ After issues removal, the process shall be restarted from (PMM-007-
INT-023-010).
Roles: Responsible:
Cluster Projects GM
NWC Project Manager
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Cluster Projects GM
Consulted:
Supervision Consultant (for site handover)
Contractor
Informed:
Design Consultant
7.4.4.7 PMM-007-INT-023-050 Issue Warning Letter to Contractor/Consultant

○ In case the Contractor did not attend the scheduled visit, do the
following:
- A warning letter using (PMF-007-INT-032 Warning Letter due to
Not Attending the Site Handover) shall be sent to the
Contractor:
· rescheduling the site visit after 15 days.
· stating that if he does not attend, the project site shall be
handed over absentia.
· stating that the absentia handover date shall be considered
the project start date.
○ In case the Consultant did not attend the scheduled meeting, do the
following:
- A warning letter using (PMF-007-INT-041 Warning Letter due to
Not Attending the Work Commencement Meeting) shall be sent
to the Consultant:
· rescheduling the work commencement meeting after 15
days.
· stating the meeting shall be conducted even if he does not
attend.
· stating the meeting date shall be considered the consultant
commencement date.
NWC Project Manager
Roles: Responsible:
Cluster Projects GM

Contractor
Informed:
Design Consultant
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7.4.4.8 PMM-007-INT-023-055 Perform Rescheduled Project Site Handover Visit /

Work Commencement Meeting

○ In case the Contractor again does not attend the visit, the committee
shall, in absence of Contractor, visit the site.
- If issues found go to (PMM-007-INT-023-040).
- If no issues found do the following:
· conduct an absentia handover to Contractor.
· prepare and sign a project site handover report.
· If Contractor does not start the work, NWC shall apply
contract terms which may go through the contract
termination process.
- When prepare the site handover report ensure that:
· The report may include reservations by any party.
· The report date shall be considered the project start date.
· The report shall be in the form (PMF-007-INT-030 Site
Handover Report).
- NWC Project Manager shall upload the site handover report to
ENJAZ system and update the project status in ENJAZ system.
- NWC Project Manager shall inform Cluster Finance GM.
- The Site handover report shall be approved by the cluster senior
GM.
○ In case the Consultant again does not attend the meeting, the
attendees shall, in absence of the Consultant:
- conduct the meeting.
- prepare and sign a work commencement report
- send a final warning letter to the Consultant to start the work in
max 15 days. If Consultant does not start the work, NWC shall
apply contract terms which may go through the contract
termination process
- When prepare the work commencement report ensure that:
· The report may include reservations by any party.
· The report date shall be considered the project start date.
· The report shall be in the form (PMF-007-INT-039 Work
Commencement Report).
- NWC Project Manager shall upload the Work Commencement
Report to ENJAZ system and update the project status in
ENJAZ system.
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- NWC Project Manager shall inform:

· Cluster Senior GM.
· Cluster Finance GM.
Roles: Responsible:
Cluster Projects GM

Contractor
Informed:
Design Consultant
PMO GM
Cluster Finance GM
7.5 PMM-007-INT-026 Conduct Project Kick Off Meeting

7.5.1 Objective
The objective of this process is to Communicate the project management system and
requirements to the Contractor.
7.5.2 Policies
1. Every construction project must have a kick off Meeting.
2. Kick off Meeting minutes must be prepared and communicated to Kickoff meeting
Attendees and Business Unit Construction Director.
7.5.3 Flowchart
Figure 7-6 PMM-007-INT-026 Conduct Project Kick Off Meeting Flowchart
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7.5.4 Procedures
7.5.4.1 PMM-007-INT-026-010 Prepare the Kickoff Meeting Agenda and Invite
Attendees
Procedure: ● Prepare the agenda for the project Kick off meeting using (PMF-007-INT-
033 Kick-off Meeting Agenda).
● Invite the following attendees to the kickoff meeting:
○ NWC Project Manager
○ Cluster Risk Section Head
○ Cluster Scheduling Section Head
○ Cluster Cost Control Section Head
○ Cluster Contracts Administration Section Head
○ Business Unit Safety Section Head
○ Supervision Consultant Project Manager and management Team
○ Contractor Project Manager and management team

Consulted:
Kickoff meeting Attendees
Informed:
7.5.4.2 PMM-007-INT-026-020 Conduct the Kickoff Meeting and Write and Circulate
the Meeting Minutes
Procedure: ● Conduct the meeting and cover all agenda items.

● Answer all Contractor’s questions.
● Write and circulate the minutes of meeting using (PMF-007-INT-034
Kick-off Meeting Minutes).

Consulted:
Kickoff meeting Attendees
Informed:
7.6 PMM-007-INT-030 Direct and Manage Project Execution

The objective of this process is to direct the performance of the planned project activities, and to
manage the various technical and organizational interfaces that exist within the project. This relies
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heavily on the Cluster Technical Services Director (to direct and manage the Design Consultant)
and the Supervision Consultant (to direct and manage the Contractor). The NWC Project Manager
must maintain sufficient monitoring and surveillance to ensure that the outcomes are tangibly
accomplishing the work defined in the Project Management Plan.
The approach of the NWC Project Manager is to ensure alignment between his Project
Management Plan and the Second Party management plans (i.e. Design Management Plan by the
Design Consultant and Construction Management Plan by the Contractor). This is illustrated below
in Figures 7-6 (for design-bid-build projects) and 7-7 (for design & build projects):
Figure 7-7 Directing the Project in Design-Bid-Build Projects
Direct
Project
Management
Plan
NWC
Project Manger
Design Construction
Management Management
Plan Plan
Cluster Technical Design Contractor Supervising

Services Director Consultant Consultant
Design Construction
Planned Planned
Activities Activities
Figure 7-8 Directing the Project in Design & Build Projects
Direct
Project
Management
Plan
NWC
Project Manger
Design and
Construction
Management
Plan
Contractor Supervising
Consultant
Design and
Construction
Planned
Activities
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The supporting approach of the Cluster Technical Services Director is to ensure accomplishment
by the Design Consultant of all work defined in the Design Management Plan. This is illustrated
below in Figure 7-8:
Figure 7-9 Managing the Design
Project
Management
Plan
NWC
Project Manger
Manage
Design Construction
Plan Plan

Design Construction
Planned Planned
The supporting approach of the Supervision Consultant is to ensure accomplishment by the

Contractor of all work defined in the Construction Management Plan. This is illustrated below
in Figure 7-9 (for design-bid-build projects) and 7-10 (for design & build projects):
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Figure 7-10 Managing the Construction in Design-Bid-Build Projects
Project
Management
Plan
NWC
Project Manger
Manage
Design Construction
Plan Plan

Design Construction
Planned Planned
Figure 7-11 Managing the Construction in Design & Build Projects
Project
Management
Plan
NWC
Project Manger
Manage
Design and
Construction
Management
Plan
Consultant
Design and
Construction
Planned
Activities
Refer to the Project Communications Management section of the manual for information on
how work progress is measured and reported, and to the Project Risk Management section of
the manual for information on how risks to project scope, Schedule, cost and quality are
monitored and controlled through action plans owned by named persons. A key role of the
NWC Project Manager is to ensure that resources are being applied to address any shortfalls
likely to impact upon achievement of the project’s objectives.
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7.7 PMM-007-INT-040 Manage Project Knowledge

7.7.1 Objective
The objective of this process is to use the existing knowledge and create new knowledge to
achieve the project’s objectives and contribute to organizational learning and Lessons learned.
This process is applicable for project teams and cluster projects team.
7.7.2 Policies
1. Lessons Learned or new knowledge can be identified by any project team member.
2. Lessons Learned workshops shall be periodically conducted.
3. Lessons Learned registers must be available to every project team member.
4. Project team members to be motivated to perform knowledge and experience
exchange activities. knowledge and experience include both explicit and tacit
knowledge.
5. This process to be implemented twice a year for cluster projects team. In these
workshops:
i. The Cluster PMO Manager shall play the roles that NWC Project Manager plays
in this process.
ii. The Cluster Projects GM shall play the roles that Business Unit Construction
Director plays in this process.
7.7.3 Flowchart
Figure 7-12 PMM-007-INT-040 Manage Project Knowledge Flowchart
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7.7.4 Procedure:
7.7.4.1 PMM-007-INT-040-010 Identify Initial Lessons Learned / New Knowledge
Procedure: ● Identify lesson learned / new knowledge once it occurs.

● The identifier (Lesson Learned Originator) can be any Project Team
Members.
● Fill up the (PMF-007-INT-025 Lessons Learned Form).
● Share it with direct supervisor for approval and inclusion in the next
lessons learned workshop.
Roles: Responsible: Lesson Learned Originator

NWC Project Manager
Consulted:
Cluster PMO Manager
NWC Project Manager
Informed:
7.7.4.2 PMM-007-INT-040-020 Conduct a Quarterly Project Lesson Learned
Workshop
Procedure: ● Conduct a quarterly project lessons learned workshop.

● The workshop is led by the project manager.
● The Design Consultant, Contractor, Supervision Consultant and NWC
Cluster Project support team members communicate what is learned
from the project.
● Invite representatives from each department of Cluster Projects
Department. For project lesson learned workshop, it invited departments
can be selective not all.
● Motivate project team members to perform knowledge exchange
activities within or outside the workshop.
● The project Manager shall add applicable lessons learned to the project
lessons learned register (PMF-007-INT-020 Lessons Learned Register).
● The project lessons learned register shall provide cumulative input to the
project lessons learned report (PMF-007-INT-021 Lessons Learned
Report).
● The updated project lessons learned register shall be circulated to all
project team members.
● The updated project lessons learned register shall be circulated to
continuous improvement lead after the workshop through
([email protected]).
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Design Consultant
Consulted:
Contractor
Cluster Projects team
Cluster PMO Manager
Lesson Learned Originator
Informed:
7.7.4.3 PMM-007-INT-040-030 Prepare Project Lessons Learned Report
Procedure: ● Prior to project closure, the Project Manager shall prepare a detailed
project lessons learned report (PMF-007-INT-021 Lessons Learned
Report).
● NWC Project Manager shall submit the report to the Continuous
Improvement Lead for review through ([email protected]).

Consulted:
Contractor
Cluster Projects team
Cluster PMO Manager
PMO GM
Informed:
7.7.4.4 PMM-007-INT-040-040 Review the Report and Publish the Applicable
Lessons Learned
Procedure: ● The Continuous Improvement Lead shall review the Project Lessons
Learned Report (PMF-007-INT-021 Lessons Learned Report).
● Identify the need to change any PMM processes or procedures and
process it through (PMM-006-GOV-050 Control of System Documents
and Continual Improvement)
● Insert applicable Lessons Learned to the NWC Master Lessons Learned
register (PMF-007-INT-020 Lessons Learned Register).
● Store applicable Lessons Learned in ECMS with a link to supporting
documentation.
● Send notification to NWC team about the new added Lessons Learned.
Roles: Responsible: Continuous Improvement Lead

PMO GM
Consulted:
NWC Project Manager
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7.8 PMM-007-INT-050 Monitor and Control Project Work

In the context of this manual, the process for “Monitoring and Control of Project Work” is a
supporting activity of PMM-007-INT-030 Direct and Manage Project Execution. This is illustrated
below in Figures 7-12, 7-13 (for design-bid-build projects) and 7-14 (for Design & Build projects):
Figure 7-13 Monitoring and Controlling the Design in Design-Bid-Build Projects
Project
Management
Plan
NWC
Project Manger
Monitor & Control
Design Construction
Plan Plan

Design Construction
Planned Planned
Figure 7-14 Monitoring and Controlling the Construction in Design & Build Projects
Project
Management
Plan
NWC
Project Manger
Monitor & Control
Design Construction
Plan Plan

Design Construction
Planned Planned
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Figure 7-15 Monitoring and Controlling the Design and Construction in Design & Build Projects
Project
Management
Plan
NWC
Project Manger
Monitor & Control
Design and
Construction
Management
Plan
Consultant
Design and
Construction
Planned
Activities
7.9 PMM-007-INT-060 Variation Control

7.9.1 Objective
The objective of this process is to review all variation requests, approve variations and manage
changes to the project deliverables, project documents and Project Management Plan (i.e.
scope, cost, schedule & performance baselines, project calendars, risk registers, planned
response actions and defined risk impact). Variation Control process is conducted throughout
project life cycle.
The Project Management Plan and the Project Scope Statement are maintained by carefully
managing changes, either by rejecting changes or by approving changes thereby assuring that
only approved changes in the variations are incorporated into the revised baseline.
Variation Control process includes procedures to be utilized when contract modifications are
required. These procedures include submittals and approval levels for the variation
authorization.
7.9.2 Policies
1. All parties must notify each other of any potential problem or change which may affect
costs, schedule or performance of the works to address it may be through a variation.
2. Variation notice response must be made within the notice periods.
3. All Variation requests must be made in written form by the second party and submit
the fully inclusive quotation covering all cost and schedule impact proposal for timely
settlement with no late surprises.
4. The second party variation request documents should be assessed and agreed or
rejected in an expeditious manner to:
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i. encourage early closeout and implementation.

ii. avoid negative effect on schedule, cost or the feasibility of the change.
5. Variation requests are managed with a number of processes which include change
identification, change review, change approval and control and update of other
affected contract constraints.
6. The second party variation request documents should be carefully and
comprehensively assessed including its affection to all project elements such as
project objectives, baselines, risk, procurement, staffing, etc.
7. Each step of the Variation Control process should not progress until all required
approvals have been provided.
8. Variation request approvals must only be carried out by authorized persons in PMM
in accordance with the NWC Authority Matrix and organizational structure.
9. Only approved variations are to be implemented.
10. Only approved variations are to be integrated in project scope, schedule and cost
baselines; ultimately incorporated in the Project Management Plan.
11. All approved variations are required to be recorded variation registers and included in
the Project Management Plan as updates and included in formal project reports.
12. The project level is the first level for negotiations which at this level shall be in forms
of second party’s documents review. Any negotiations at this level are informal.
13. When negotiate the second party are held at HQ authorized persons to negotiate:
i. Formal negotiations must be on basis of open minds, fairness and commitment
to contract. It must be held before moving to any Alternative Dispute Resolution
(ADR).
ii. Alternative Dispute Resolution (ADR) should be gone through as per in the
project contract if the contract states ADR escalation. ADR may include
Mediation, Arbitration and/or Litigation. These ADR steps can be provided,
respectively, through a professional mediator, a trained professional arbitrator
and the official litigation system. ADR means must be in line with the Saudi Arabia
laws and regulations.
iii. As litigation creates complications in project progress due to that it usually takes
long time, it should be the last resort in ADR steps to resolve a claim.
14. A contract cannot go closed as there is an open Variation Request.
15. It is not allowed to assign any additional work to a Design Consultant or Contractor
through variation order after initial acceptance and handover.
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7.9.3 Flowchart
Figure 7-16 PMM-007-INT-060 Variation Control Flowchart
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7.9.4 Procedures
7.9.4.1 PMM-007-INT-060-010 Initiate Project Variation Notice by NWC
Procedure: ● The scope of every variation request should be clearly defined by NWC
in collaboration with the Supervision Consultant.
● NWC shall prepare a Variation Notice including all related data, drawings
and documentation using (PMF-007-INT-013 Variation Notice Template)
and obtain the proper signatures from authorized persons.
● The Variation Notice shall be numbered and the (PMF-007-INT-010
Project Variation Register) shall be updated accordingly.
● Use (PMF-007-INT-017 Variation Notice Checklist) to ensure the
properness of key requirements that should be addressed for Variation
Notices.
● As a minimum, the following items shall be included in the Variation
Notice:
○ Descriptive scope of the variation.
○ Method of payment (lump sum, unit prices, or cost reimbursable).
○ Schedule adjustments (if known).
○ Directions to respond to the notice.
○ Technical Documents (Drawings, Specifications, Procedures,
Plans, etc.).
○ If the variation reduces the project value by more 20%, the second
party shall provide a letter stating that he accepts to reduce the
variation reduction amount without currently or lately requests any
claim from NWC.
● The approved Variation Notice will be sent to the second party.
● Refer to (PMF-007-INT-022 Variation Control Process Flow in
Governance Document).

Consulted:
Director
Informed:
Design Consultant / Supervision Consultant / Contractor
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7.9.4.2 PMM-007-INT-060-020 Respond to Variation Notice
Procedure: ● The second party shall respond to the Variation Notice initiated by NWC
within max 14 days.
● The second party shall submit for proposed work:
○ a detailed scope proposal.
○ a schedule proposal incorporated in project schedule.
○ a cost change proposal.
● Update the (PMF-007-INT-010 Project Variation Register) accordingly.
Roles: Responsible: Design Consultant / Supervision Consultant / Contractor

NWC Project Manager
Consulted:
NWC Project Manager
Informed:
7.9.4.3 PMM-007-INT-060-025 Submit a Variation Request
Procedure: ● The second party shall submit Variation Request that at least describes
variation aspects (mentioned next) and their effects on project aspects.
The variation aspects include but not limited to:
○ a detailed scope proposal.
○ a project schedule in P6 format that incorporates variation schedule
proposal.
○ a cost change proposal.
○ any supporting drawings and specifications.
○ any supporting documents.
○ If the variation request reduces the project value by more 20%, the
second party shall provide a letter stating that he accepts to reduce
the variation reduction amount without currently or lately requests
any claim from NWC.
Roles: Responsible: Design Consultant / Supervision Consultant / Contractor
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NWC Project Manager

Consulted:
NWC Project Manager
Informed:
7.9.4.4 PMM-007-INT-060-030 Review the Second Party Response / Submitted
Variation Request
Procedure: ● Review the submission:

○ In design stage:
- the NWC project Manager and Cluster Project Support Team
shall review and verify cost accuracy, check arithmetic, contract
value tolerances (+10%/-20%) and validate schedule
implications within 7 days.
- The NWC project Manager shall check the Cluster Project
support team recommendations, check within overall budget,
advise on contractual cost and schedule impacts and approve
and initiate a Variation Request within 7 days.
○ In construction stage:
- Supervision Consultant shall review and verify cost accuracy,
check arithmetic, contract value tolerances (+10%/-20%) and
validate schedule implications within 7 days.
- The NWC project Manager shall check the Supervision
Consultant recommendations, check within overall budget,
advise on contractual cost and schedule impacts and approve
and initiate a Variation Request within 7 days. In collaboration
with the Supervision Consultant, NWC Project Manager shall
create a Variation report using (PMF-007-INT-027 Variation
Report).
● In case of NOT accepting second party provisions:
○ NWC project manager (with Supervision Consultant in construction
projects) shall negotiate with second party till reaching an
agreement.
○ The second party shall submit the agreed Variation Notice
settlement officially.
○ The above steps shall be repeated.
Roles: Responsible:
NWC Project Manager
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Consulted:
Director
Variation Order Requester (Design Consultant /
Supervision Consultant / Contractor)
7.9.4.5 PMM-007-INT-060-035 Initiate Variation Request Approval Form
Procedure: ● Within 14 days from second party variation request submission:

○ Create the Variation Request Report using (PMF-007-INT-027
Variation Report)
○ Create the Variation Request Approval form using:
- (PMF-007-INT-044 Variation Request Preparation Guideline)
- (PMF-007-INT-008 Variation Request Approval Form
(Clusters)) for Cluster projects.
- (PMF-007-INT-026 Variation Request Approval Form (HQ)) for
HQ projects.
○ Get the Supervision Consultant signature in the form.
○ Ensure from Cluster Finance Department that the financial liquidity
is available.
○ Send the Variation Request Approval Form for review and 1st
approval using:
- (PMF-007-INT-008 Variation Request Approval Form
(Clusters)) to Cluster Projects GM.
- (PMF-007-INT-026 Variation Request Approval Form (HQ)) to
the project related GM.

Consulted:
Cluster Finance GM
Cluster Projects GM (Cluster Projects)
Informed:
HQ Requesting GM (HQ Projects)
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7.9.4.6 PMM-007-INT-060-040 1st and 2nd Approvals on the Variation Request
Procedure: ● For cluster projects:

○ The Cluster Projects GM shall review the variation request, approve
the variation request approval form and send all variation documents
to the Cluster Senior GM for review within 2 days.
○ The Cluster Senior GM shall review the variation request, approve
to the Scheduling & Control GM for review within 3 days.
● For HQ projects:
○ The project related GM shall review the variation request, approve
to Scheduling & Control GM for review within 3 days.
● At any step of this procedure, if any additional information is required,
the requester shall request it copying the NWC Project Manager to collect
and transmit it.
● In the event that a Variation Request is rejected at any step, the project
manager shall ensure the rejection justification is recorded on the
Variation Request and shall issue a rejection letter is to be issued to
Variation Requester by the NWC Project Manager.
● Inform NWC Project Manager to update the (PMF-007-INT-010 Project
Variation Register) accordingly.
Cluster Projects GM (Cluster Projects)
Roles: Responsible:
Cluster Senior GM (Cluster Projects)
Cluster Senior GM (Cluster Projects) / HQ Requesting GM
Accountable:
(HQ Projects)
Consulted:
NWC Project Manager
Informed:
NWC Project Manager
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7.9.4.7 PMM-007-INT-060-043 Final Approval on Variation Request
Procedure: ● The Scheduling & Control GM shall review and forward the Variation
Request documents to Technical Services GM for review and feedback
if the variation includes new/modified BoQ items.
● The Scheduling & Control GM shall send the Variation Request
documents within 8 days to the Capital Projects & Technical Services VP
for final approval.
● The Capital Projects & Technical Services VP shall give final approval
on the variation request approval form within 2 days and send to:
○ Authorized Person for variations on MEWA Projects that include
only Extension of Time for final approval.
○ Cluster Senior GM for variations on:
- NWC Projects to forward to Cluster Negotiation & Award
department (N&A).
- MEWA Projects that includes New BoQ items or changes on
existing BoQ items to forward to Bid Examination Committee
(BEC).
and transmit it.
● In the event that a Variation Request is rejected at any step, the project
manager shall ensure the rejection justification is recorded on the
Variation Request and shall issue a rejection letter is to be issued to
Variation Requester by the NWC Project Manager.
Roles: Responsible:
Cluster Projects GM
Consulted:
Cluster Senior GM
Authorized Person
Informed:
HQ/Cluster Negotiation & Award department (as per
authority)
Cluster Senior GM
NWC Project Manager
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7.9.4.8 PMM-007-INT-060-046 Forward Approved Variation to Negotiation & Award

(N&A) / Department Bid Examination Committee (BEC)
Procedure: ● Cluster Senior GM shall forward within 3 days:

○ The Approved Variations on NWC Projects to Cluster Negotiation &
Award department (N&A) to Cluster Supply Chain department for
Variation PO issuance.
○ The Approved Variations on MEWA Projects that includes New BoQ
items or changes on existing BoQ items to Bid Examination
Committee (BEC) to review and obtain final approval form
Authorized Person

Cluster Projects GM
Consulted:
NWC Project Manager
Bid Examination Committee
Informed:
NWC Project Manager
7.9.4.9 PMM-007-INT-060-050 Negotiate and Agree the Variation Settlement
Procedure: ● Review the assessment and negotiate with the second party the final
cost and time impacts and agree the variation settlement.
● Send the Variation Request to the authorized person for approval.
and transmit it.
Roles: Responsible:
authority)
Accountable:
authority)
Cluster Senior GM (Cluster Projects)
Consulted:
NWC Project Manager
Informed: Authorized Person
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7.9.4.10 PMM-007-INT-060-055 Approve the Variation Request
Procedure: ● Review and approve the Variation Request

● Send the approved Variation Request to Supply Chain Department
Roles: Responsible: Authorized Person
Accountable: Authorized Person

Consulted:
authority)
Cluster Senior GM
Supply Chain GM
Informed:
7.9.4.11 PMM-007-INT-060-060 Issue Variation Order to the Second Party
Procedure: ● The Supply Chain Department shall receive the approval from the
authorized person.
● The Supply Chain Department shall ensure the documents completion
and issue the Variation Order to the second party.
Roles: Responsible: HQ/Cluster Supply Chain GM (as per authority)
Accountable: HQ/Cluster Supply Chain GM (as per authority)

Consulted:
NWC Project Manager
Informed:
NWC Project Manager
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7.9.4.12 PMM-007-INT-060-070 Update the Project Documents and Plans
Procedure: ● Notify all relevant parties of approved variation and the variation order
specially supply chain in order to issue the Variation PO.
● To include any changes happens as a result of the approved Variation
Order and its scope, cost and/or schedule baselines, update the affected
documents of the following:
○ Project Schedule
○ Project Schedule Forecast
○ Project Scope
○ Project Status in ENJAZ system
○ Cash Flow
○ Cash Flow Forecast
○ Risk Register
○ Quality Management Plan
○ Lessons Learned
○ Any other affected document
NWC Project Manager
Roles: Responsible:
Consulted:
Informed:
Director
Director
7.10 PMM-007-INT-070 Close the Project

7.10.1 Objective
The objective of this process is to verify that all the project deliverables and any other related
work have been completed and accepted, together with all the administrative activities. These
activities include the finalization and agreement of all open claims, updating the project records
to reflect the final results and archiving them ready for future use.
This process includes ensuring finalization of all activities completed across all project
management groups to formally close the project as appropriate.
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7.10.2 Policies
1. The closure of project requires all the contract documentation to be collected, indexed,
filed and archived.
2. Close the Project process ensures appropriate contract/s closure.
3. The Close Project “Administrative closure” includes the activities, interactions, and
related roles and responsibilities of the project team members and other stakeholders
involved in executing the administrative procedure for the project. Administrative
closure includes:
● Assembling project records.
● Gather lessons learned.
● Archive project information for future use.
7.10.3 Flowchart
Figure 7-17 PMM-007-INT-070 Close the Project Flowchart
7.10.4 Procedures
7.10.4.1 PMM-007-INT-070-010 Ensure Completeness and Properness of Initial and
Final Acceptance and Handover
Procedure: ● Ensure Completeness and Properness of Initial and Final Acceptance

and Handover using (PMF-007-INT-018 Initial Handover Checklist) and
(PMF-007-INT-019 Final Handover Checklist) to check for completed
items.
● Ensure issuance of lessons learned report.

Consulted:
Director
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Informed:
Director
Director
7.10.4.2 PMM-007-INT-070-020 Confirm the Status of Contracts
Procedure: ● Use (PMF-007-INT-011 Project Closure Checklist) to check and evaluate

the contract/s status and final performance evaluation.
● Notify the Finance department that the project is closed and approve
payment of the outstanding retained funds.
● Approve returning to Contractor any project related bonds still with NWC.
● Ensure that the “Contract Closure” activities and closure documentation
completed the following:
○ Contractor Evaluation Records.
○ Closeout Audit Report and cost savings/overrun analysis.
○ Closeout Audit Report Statement signature.
○ Cost Data analysis input into Cost Database.
○ Risk register closure.
○ Identification of remaining contingency money.
○ Final Payment Certificates
○ Resolution of Commercial Items
Roles: Responsible:
NWC Project Manager
Consulted:
Cluster scheduling Section Head
Director
Informed:
Director
Contractor
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7.10.4.3 PMM-007-INT-070-040 Develop Project Closeout Report
Procedure: ● Develop three project closeout reports as follows:

○ For Design Contract, use (PMF-007-INT-035 Design Project
Closeout Report) at the end of Design Stage.
○ For Supervision Contract, use (PMF-007-INT-037 Supervision
Project Closeout Report) after completion of the Initial Acceptance
Process.
○ For Construction Contract, use (PMF-007-INT-036 Construction
Project Closeout Report) at the end Handover & Closeout Stage.
● Prepare each report before the stage gate review and submit it after the
“Go Decision” of the stage gate review.
● Send the Project Closeout Report to PMO GM, Business Unit
Construction Director and the role in “Informed” cell below.

Consulted:
Director
Informed:
Director
PMO GM
Director
7.10.4.4 PMM-007-INT-070-050 Close the Project and Inform Key Stakeholders
Procedure: ● After getting the “GO” decision in stage gate review, Cluster Scheduling
& Control Manager shall change the Project status in ENJAZ System to
closed.
● NWC Project Manager shall notify the key stakeholders such as
Scheduling & Control GM, Cluster Projects GM, Cluster Supply Chain
Department and Cluster Finance Department that the project is closed.
Roles: Responsible:
NWC Project Manager
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Consulted:
Director
Cluster Senior GM
Informed:
Cluster Projects GM
Cluster PMO Manager
Director
Cluster Finance GM
PMO GM
Supply Chain GM

The table below identifies the KPIs of Project Integration Management. The NWC Project Manager
is responsible to measure and report these KPIs at each KPI stated frequency. The current status
of each KPI is to be reflected in the monthly project progress report.
Table 7-1 Project Integration Management KPIs

Detail Measurement
projects without
Project Charter approved project
1 Monthly 0 NA >0
Development charters at Initial
Planning stage in the
cluster.
projects without
Project
approved Project
2 Management Plan Monthly 0 NA >0
Management Plans at
Development
Initial Planning stage in
the cluster.
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Detail Measurement
projects in the cluster
that handed the sites to
Site handover to contractors through a
3 Monthly 0 NA >0
Contractor committee within 60
days from PO issuance
date with the condition
the contract is signed.
that executed variations
4 Variation Control in scope, schedule, cost Monthly 0 NA >0
or contract without
approved variation
order.
Time for cluster variation requests that
projects raised from cluster
department to raise projects department to
5 Monthly 0 2 >2
variation requests P&TS department at HQ
to P&TS in more than 19 days
department at HQ from contractor request
submission date.
variation requests that
Time for P&TS sent from P&TS
department at HQ department at HQ to
to raise variation cluster projects
6 Monthly 0 2 >2
requests to department in more than
negotiation & 10 days from date of
award department receiving the variation
request from cluster
projects department.
Number of calendar
days to close a project
Close Project and inform key
7 Monthly 14 28 > 28
Duration stakeholder from Final
Acceptance Report
Issuance Date.
8 Project Closeout projects without formal Monthly 0 NA >0
project closeout.
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7.12 Attachments
INT Project Integration Management).
Table 7-2 Project Integration Management forms, templates and guidelines
Document No. Title
EPM-S00-PR-000001 Project Stakeholder Engagement Plan Procedure
EPM-S00-PR-000009 Land Acquisition Strategy Guidelines
PMF-007-INT-001 Project Management Plan
PMF-007-INT-002 Design Management Plan
PMF-007-INT-003 Design Management Plan Review Checklist
PMF-007-INT-004 Construction Management Plan
PMF-007-INT-005 Construction Management Plan Review Checklist
PMF-007-INT-008 Variation Request Approval Form (Clusters)
PMF-007-INT-010 Project Variation Register
PMF-007-INT-011 Project Closure Checklist
PMF-007-INT-013 Variation Notice Template
PMF-007-INT-014 Project Charter
PMF-007-INT-016 Permitting Plan
PMF-007-INT-017 Variation Notice Checklist
PMF-007-INT-018 Initial Handover Checklist
PMF-007-INT-019 Final Handover Checklist
PMF-007-INT-020 Lessons Learned Register
PMF-007-INT-021 Lessons Learned Report
PMF-007-INT-022 Variation Control Process Flow in Governance Document
PMF-007-INT-024 Land Acquisition Strategy Form
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Document No. Title
PMF-007-INT-025 Lessons Learned Form
PMF-007-INT-026 Variation Request Approval Form (HQ)
PMF-007-INT-027 Variation Report
PMF-007-INT-028 Contractor Representative Nomination Request for Site Handover
PMF-007-INT-029 Site Handover Committee Forming Decision
PMF-007-INT-030 Site Handover Report
PMF-007-INT-031 Site Handover Delay Report
PMF-007-INT-032 Warning Letter due to Not Attending the Site Handover
PMF-007-INT-033 Kick-off Meeting Agenda
PMF-007-INT-034 Kick-off Meeting Minutes
PMF-007-INT-035 Design Project Closeout Report
PMF-007-INT-036 Construction Project Closeout Report
PMF-007-INT-037 Supervision Project Closeout Report
PMF-007-INT-038 Consultant Representative Nomination Request for Work

Commencement Meeting
PMF-007-INT-039 Work Commencement Report
PMF-007-INT-040 Work Commencement Delay Report
PMF-007-INT-041 Warning Letter due to Not Attending the Work Commencement Meeting
PMF-007-INT-042 Project Sign Board
PMF-007-INT-044 Variation Request Preparation Guideline
PMF-007-INT-045 Technical Support Project Closeout Report
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Section 8 - Project Scope Management
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History Page

12/01
● The process “PMM-008-SCO-010 Plan Project Scope Management” is elaborated.
● The process “PMM-008-SCO-030 Define Project Scope” is revised.
● The process “PMM-007-SCO-050 Control Scope” is revised.
● The process “PMM-008-SCO-055 Testing & Commissioning” is added.
Change
Description ● The process “PMM-008-SCO-060 Initial Acceptance and Handing Over of Project
Scope” is revised.
● The process “PMM-008-SCO-065 Partial Initial Acceptance and Handover of Project
Scope” is added.
● The process “PMM-008-SCO-070 Final Acceptance of Project Scope” is revised.
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06/02
This section is developed as an update to “Scope” section in first version the Project
the changes:
● Adding Process for Analyze Business Case and Finalize Project Requirements.
● Adding a procedure for 30% design review.
● Adding 2 processes for initial and final acceptance instead of verify scope
process.
● Adding the following forms:
○ 30% Design Review Checklist
○ 90% Design Review Checklist
○ Engineering Closeout Checklist
○ Spare Parts Record Template
○ Snag List Template
Change
Description ○ Initial Acceptance and Handover Certificate
○ Initial Handover Rejection Report
○ Final Acceptance Certificate
○ Initial Acceptance Committee Forming Request to Cluster
○ Final Acceptance Committee Forming Request
○ Initial Acceptance Committee Forming Request to HQ
○ Contractor Initial Acceptance Request letter
○ Initial Acceptance and Handing Over Process Flow in Governance
Document
○ Final Acceptance of Project Scope Process Flow in Governance Document
● Updating responsibilities as per Organization Chart.
● Creating new Flowcharts.
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8 Project Scope Management

The subject of this particular section of the Project Management Manual (PMM) is Project Scope
Management.
The high-level process map for Project Scope Management is illustrated below in Figure 8-1:
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Figure 8-1 High-Level Process Map for Project Scope Management
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8.1 PMM-008-SCO-010 Plan Project Scope Management

8.1.1 Objective
The objective of this process is to ensure that the Project Management Plan includes
● a written project scope statement.
● the project processes for how the scope will be:
○ broken down
○ controlled
○ validated
○ communicated
○ agreed by all relevant stakeholders throughout the project’s lifecycle.
8.1.2 Policies
1. Each project must have a separate section for scope management in the Project
Management Plan, created by the NWC Project Manager and the Cluster Technical
Services Director and used as the guiding document for internal and external staff
throughout the project.
2. Project scope management must be supported by formal risk management activities.
3. The approved Project Management Plan, including the scope management plan
section, shall be included in the tender document when NWC is procuring Second
4. Second parties shall create their own management plans (design and/or construction)
for the project as part of their contract mobilization work. These management plans
must comply with the scope management requirements defined in the NWC Project
Management Plan and shall be approved by NWC before project execution activities
commence.
5. The Scope Management Plans in PMPs of NWC, Design and Construction must be
kept up-to-date throughout the project life cycle.
6. The diagram below “Scope Map” illustrates the approach to be adopted for managing
the scope of a project throughout its lifecycle.
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Figure 8-2 Scope Life Map
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8.1.3 Flowchart
Figure 8-3 PMM-008-SCO-010 Plan Project Scope Management Flowchart
8.1.4 Procedures
8.1.4.1 PMM-008-SCO-010-010 Develop the Scope Management Plan Section of the

includes a dedicated section for Scope management.
● Update the Project Scope Section throughout the lifecycle with the
Roles: Responsible:
NWC Project Manager
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Cluster Projects GM
Consulted:
Informed:
Cluster Projects GM
8.1.4.2 PMM-008-SCO-010-020 Approve the Scope Management Plan Section of
Procedure: ● Review and Approve the Scope Management Plan Section of Project
Management Plan.
satisfactorily.
● Approve the submitted Project Scope Management Plan Section.
Roles: Responsible: Cluster Technical Services Director

Consulted:
NWC Project Manager
Cluster Projects GM
Informed:
NWC Project Manager
Cluster Projects GM
8.1.4.3 PMM-008-SCO-010-030 Ensure Scope Requirements and Technical

includes a dedicated section for Scope management.
own Scope Management Plan and must submit it during the contractual
proposals includes Scope assessment criteria, which addresses:
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Consulted:
8.1.4.4 PMM-008-SCO-010-040 Develop Project Scope Management Plan Section in

the Project Design Management Plan
Procedure: ● Develop Project Scope Management Plan Section in the Project Design
Management Plan.
● Ensure that the Project Scope Management Plan Section in the Project
Design Management Plan is in alignment with the Project Scope
Management Plan Section in the NWC Project Management Plan.
Director about the development of the Project Scope Management Plan
Section.
● Include the Project Scope Management Plan Section in the Project
Management Plan.

NWC Project Manager
Consulted:
8.1.4.5 PMM-008-SCO-010-050 Ensure Scope Requirements and Technical

Scope Management Plan and must submit it during the contractual
proposals includes Scope assessment criteria, which addresses:

Consulted:
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8.1.4.6 PMM-008-SCO-010-060 Develop the Construction Scope Management Plan

Section
Procedure: ● Develop Project Scope Management Plan Section in the Project

● Ensure that the Project Scope Management Plan Section in the Project
Construction Management Plan is in alignment with the Project Scope
the development of the Project Scope Management Plan Section.
● Include the Project Scope Management Plan Section in the Project

NWC Project Manager
Consulted:
8.2 PMM-008-SCO-030 Define Project Scope

8.2.1 Objective
The objective of this process is to:
● capture and review the requirements collected in the Business case to be elaborated
by adding any requirements arose to date and incorporating any requirement changes
occurred.
● develop a detailed project scope statement as the basis for construction contract.
8.2.2 Policies
1. The project requirements that set in the business case are to be considered in the
design processes.
2. During Initial Planning Stage and before conceptual design (10% design)
development and Cluster Technical Services Director shall develop an “Owner Project
Requirements” (OPR) by:
i. Analyzing business case and obtain its requirement.
ii. Updating any requirement that encountered changes after business case
approval.
iii. Identifying and adding any new requirements that rose after business case
approval.
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3. OPR should cover but not limited to:

i. business requirements
ii. stakeholder requirements
iii. solution requirements (functional and nonfunctional)
iv. handing over requirements.
4. Identification and assessment of the project needs and the design shall be done in
cooperation with the End-user department (Cluster Asset Management & Operation
Excellence department)
5. For every design project, the Design Consultant is responsible to create a project
specific:
i. Owner Project Requirements (OPR).
ii. Basic Design Data (BDD).
iii. Design Basis Report (DBR).
6. The project scope must be made explicit through clearly defined asset features and
functions to be delivered by the project.
7. Additional asset features and functions are to be excluded from the project unless
agreed through a formally Approved Variation.
8. The works to be performed to execute the project products that deliver the defined
asset functions and features must be made explicit through a planned set of
milestones and deliverables, which show that the project has been broken down into
relevant and achievable work packages.
9. Review and assessment of the design shall be done in cooperation with the End-user
department (Cluster Asset Management & Operation Excellence department).
10. The mandatory design package reviews are at 30%, 90% and 100%. Review for 60%
design package or any other design package shall be performed if stated in the
contract.
11. A copy of submitted 30% design package shall be forwarded to Value Engineering
Department to conduct a Value Engineering on this package.
12. A copy of submitted design package next to 30% design package that received VE
report shall be forwarded to Value Engineering Department to ensure the
incorporation of Value Engineering report recommendations.
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8.2.3 Flowchart
Figure 8-4 PMM-008-SCO-030 Define Project Scope Flowchart
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8.2.4 Procedures
8.2.4.1 PMM-008-SCO-030-010 Analyze Business Case and Update Project
Requirements
Procedure: ● Review and analyze business case.

● Collect project requirements by:
○ Capturing from approved business case.
○ Performing Geotechnical Study.
○ Performing Environmental Study.
○ Meeting with key stakeholders such as:
- Cluster Asset Management & Operation Excellence team
- Business Unit Construction team.
- Service end users.
- Municipality.
- Related formal authorities
● Considering the secured fund, develop an Owner Project Requirements
(OPR). The OPR shall include at least:
○ Business requirements.
○ Project Requirements.
○ Solution requirements (functional and nonfunctional).
○ Stakeholder requirements.
○ Handing over requirements.
● Create a Requirements Traceability Matrix using (PMF-008-SCO-037
Requirements Traceability Matrix RTM).
Roles: Responsible:
NWC Project Manager
Design Consultant (if a shared/devoted Design Consultant
assigned)
Consulted:
Cluster Projects GM
Director
Informed:
Director
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8.2.4.2 PMM-008-SCO-030-020 Identify Possible Project Design Options and Create

the Design Basis Report
Procedure: ● Identify the feasible possible design options.

● During Risk Workshop No. 2, discuss and evaluate design options and
associated risks.
● Complete any design optioneering actions arising from the workshop (as
recorded in the workshop report).
● Decide which proposed design option is the best solution for each
function.
● Create the Design Basis Report DBR to describe the functions and
deliverables that shall be designed to fulfill all requirements in the
approved OPR.
● Update the OPR to eliminate, merge and/or optimize the requirements.
● Update the (PMF-008-SCO-037 Requirements Traceability Matrix RTM).
Roles: Responsible:
NWC Project Manager
assigned)
Consulted:
Director
Material Approval Section Head
Informed:
Custer Supply Chain Manager
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8.2.4.3 PMM-008-SCO-030-023 Develop the 30% Design Package for EPC Projects
Procedure: ● Develop the project 30% Design Package utilizing, at least, the updated:
○ Owner Project Requirements (OPR).
● Perform internal review for the 30% Design Package using:
○ (PMF-008-SCO-040 Design Package Review Release to
Reviewers).
○ (PMF-008-SCO-038 Design Review Guidelines).
○ (PMF-008-SCO-039 Design Packages Elements).
○ Utilize (EPM-KE0-PR-000002 Design Review Procedure) as much
as possible beside the mentioned attachments.
● Send the 30% Design Package to Cluster Technical Services Director
for review, approval and Value Engineering.
Roles: Responsible:
Cost Estimation Lead
NWC Project Manager
assigned)
Consulted:
Director
Informed: Cluster Technical Services Director
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8.2.4.4 PMM-008-SCO-030-026 Approve the 30% Design Package for EPC Projects
Procedure: ● For the 30% Design Package, review and approve/reject the package by
following the formal acceptance process described in the Project
Management Plan using:
Reviewers).
● Send a copy of the submitted 30% Design Package to Value Engineering
department for Value Engineering conducting and feedback.
● After VE study conducting, receive the VE study report.
● Develop a design review report and incorporate the received Value
Engineering Report into it.
● Send the approved 30% design package to NWC Project Manager for
inclusion in RFP.

Consulted:
NWC Project Manager
assigned)
Director
NWC Project Manager
Informed:
Cluster Projects GM
8.2.4.5 PMM-008-SCO-030-030 Update the Scope Management Plan Section of
Procedure: ● After receiving acceptance on 30% design package, update the (PMF-
008-SCO-037 Requirements Traceability Matrix RTM).
● Update the Scope Management Plan Section of Project Management
Plan with updated OPR, selected design option and developed
Conceptual Design (30% design).
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Consulted:
Design Consultant (if Cluster Tech. Ser. Dept. has a shared
one)
Informed: Custer Supply Chain Manager
8.2.4.6 PMM-008-SCO-030-035 Develop the 30% Design Package for Design-Bid-

Build Projects
Procedure: ● Develop 30% Design Package utilizing, at least, the updated:

● Perform internal review for the 30% design package using:
Reviewers).
● Incorporate the internal review comments and develop 30% design
package. The submittal shall include soft and hard copies as per stated
in the contract.
● Send the 30% design package to NWC (NWC Project Manager and
Cluster Technical Services Director) for review and approval.
● The design shall be performed for 60% design package and/or any other
design package if stated in the contract.
Design Consultant (in design projects)
Roles: Responsible:
Contractor (in Design & Build projects)
NWC Project Manager
Consulted:
Design Consultant
NWC Project Manager
Informed:
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8.2.4.7 PMM-008-SCO-030-040 Approve the 30% Design Package for Design-Bid-

Build Projects
Procedure: ● Review the submitted package by following the formal acceptance

process described in the Project Management Plan using:
Reviewers).
● Send a copy of the submitted 30% design package to Value Engineering
department for Value Engineering conducting and feedback.
● Develop a design review report and incorporate the received Value
Engineering Report into it.
● Approve/Reject the submitted 30% Design Package.
● Send the design review report to Design Consultant.
● The design review shall be repeated for 60% design package or any
other design package if stated in the contract. If the 60% design review
performed, it shall include ensuring the incorporation of VE
recommendation by Cluster Value Engineering department.
Cluster Technical Services Director (in design projects)
Roles: Responsible:
Supervision Consultant (in Design & Build projects)
NWC Project Manager
Cluster Technical Services Director (in Design & Build
Consulted:
projects)
Design Consultant
Design Consultant
Informed:
projects)
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8.2.4.8 PMM-008-SCO-030-043 Develop the Design Submittals in Design & Build

Projects
Procedure: ● As per scheduled, develop the design submittals using (PMF-008-SCO-

047 Design Submittals in EPC Projects after Award and before 90%
Design Package)
● In development utilize, at least, the updated:
○ 30% design package.
● Perform internal review for the design submitted design submittals using:
Reviewers).
● Utilize (EPM-KE0-PR-000002 Design Review Procedure) as much as
possible beside the mentioned attachments.
● Incorporate the internal review comments and develop the design
submittals. The submittals shall include soft and hard copies as per
stated in the contract.
● As per scheduled, send the design submittals to NWC (NWC Project
Manager and Cluster Technical Services Director) for review and
approval.

NWC Project Manager
Consulted:
Design Consultant
Design Consultant
Informed:
NWC Project Manager
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8.2.4.1 PMM-008-SCO-030-046 Approve the Design Submittals in Design & Build

Projects
Procedure: ● Review the submitted Design Submittals by following the formal

acceptance process described in the Project Management Plan using:
Reviewers).
● Develop a design review report.
● Approve/Reject the submitted design submittals.
Roles: Responsible:
NWC Project Manager
Consulted:
Design Consultant
Director
Design Consultant
Informed:
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8.2.4.2 PMM-008-SCO-030-048 Develop the 90% Design Package
Procedure: ● Develop 90% design package utilizing the approved 30% design
package (or 60% design package if contractually stated) and, at least,
the updated:
Reviewers).
in the contract.
● Send the 90% design package for review and approval to:
○ NWC Project Manager and Cluster Technical Services Director (in
design projects)
○ NWC Project Manager and Supervision Consultant (in Design &
Build projects)
Roles: Responsible:
NWC Project Manager
Consulted:
Design Consultant
Design Consultant
Informed:
NWC Project Manager
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8.2.4.3 PMM-008-SCO-030-050 Approve the 90% Design Package
Procedure: ● If the 90% design review is the next design review to the 30% design
review that received VE report, forward a copy of the submitted design
package to VE Department to ensure the incorporation of Value
Engineering report recommendations.
● Review the submitted package by following the formal acceptance
process described in the Project Management Plan using:
Reviewers).
● The Cluster Asset Management & Operation Excellence shall participate
in the review process.
● Cluster Technical Services Director shall approve/reject the submitted
90% Design Package then send it to Technical Services GM for final
approval.
● Technical Services GM shall approve/reject the submitted 90% Design
Package.
● Cluster Technical Services Director shall send the design review report
to Design Consultant.
Roles: Responsible:
NWC Project Manager
Consulted:
projects)
Design Consultant
Director
Design Consultant
Informed:
projects)
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Guidelines: ● The Complete Design package shall include but not limited to:
○ Design Basis report which includes the design basis for all
disciplines included in the design package
○ Basic Engineering Design Data (BEDD)
○ Design Criteria
○ Drawings
○ Specifications
○ Special studies
8.2.4.4 PMM-008-SCO-030-060 Ensure Relevant External Stakeholders Approvals

on the Project Scope
Procedure: ● Update the (PMF-008-SCO-037 Requirements Traceability Matrix RTM).

● Ensure that, the Design Consultant has collected the approvals of
relevant stakeholders (e.g. Civil defense, Municipalities, etc.), as shown
in (PMF-015-RIS-018 Stakeholders Register).
● Retain records of stakeholder comments and acceptance/rejection
records, for uploading to the project folder in the Enterprise Content
Management System (ECMS).
● If the revision is rejected and cannot be resolved with the stakeholder(s)
who raised the objection, then escalate the issue to the Cluster Projects
GM for resolution.
Roles: Responsible:
NWC Project Manager
Consulted: All relevant stakeholders

Informed:
Director
Director
projects)
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8.2.4.5 PMM-008-SCO-030-065 Develop the 100% Design Package
Procedure: ● Develop 100% design package utilizing the approved 90% design
package and, at least, the updated:
Reviewers).
in the contract.
● Send the 90% design package for review and approval to:
○ NWC Project Manager and Cluster Technical Services Director (in
design projects).
○ NWC Project Manager and Supervision Consultant (in Design &
Build projects).
Roles: Responsible:
NWC Project Manager
Consulted:
Design Consultant
Design Consultant
Informed:
NWC Project Manager
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8.2.4.6 PMM-008-SCO-030-070 Approve the 100% Design Package
Procedure: ● To ensure completion of design elements and ensure satisfactory

closure of all actions pertaining to design completion Use (PMF-008-
SCO-040 Design Package Review Release to Reviewers), (PMF-008-
SCO-038 Design Review Guidelines) and (PMF-008-SCO-039 Design
Packages Elements). Utilize (EPM-KE0-PR-000002 Design Review
Procedure) as much as possible beside the mentioned attachments.
● Ensure closeout of design audit findings.
● The Technical Services GM and Cluster Asset Management & Operation
Excellence shall participate in this activity.
● Review and accept/reject the final design package (Project Scope
Statement).
● Perform the process (PMM-006-GOV-170 Stage Gate Review).
Roles: Responsible:
NWC Project Manager
Consulted:
projects)
Director
Informed:
projects)
PMO GM
Director
8.2.4.7 PMM-008-SCO-030-080 Update the Project Scope Statement in the Project
Management Plan
Procedure: ● After design completion, update the Project Scope Statement in the
● The Cluster Technical Services Director helps and peer-review the
written definition.
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NWC Project Manager

Roles: Responsible:
Consulted:
Director
Informed: Related Stakeholders
8.3 PMM-008-SCO-040 Create the Work Breakdown Structure (WBS)

8.3.1 Objective
The objective of this process is to subdivide the major project deliverables and project work
into smaller, more manageable work packages.
8.3.2 Policies
1. The project WBS shall be developed by the “Primavera P6” and uploaded to its
database.
2. The project WBS shall be appended to the Project Management Plan and thereby
approved by all relevant stakeholders.
3. All changes to be made to WBS must be processed through the (PMM-007-INT-060
Variation Control) process.
8.3.3 Flowchart
Figure 8-5 PMM-008-SCO-040 Create the Work Breakdown Structure (WBS) Flowchart
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8.3.4 Procedures
8.3.4.1 PMM-008-SCO-040-010 Create Work Breakdown Structure
Procedure: ● Use the applicable WBS template from NWC “Primavera P6” Database.
● Customize the used template to suit the project, in terms of the scope
definition, milestones and deliverables.
● Develop the project Work Breakdown Structure and submit it for
Supervision Consultant and NWC approvals.
● Update the scope section in project management plan by the created
WBS.
Consulted: Supervision Consultant

NWC Project Manager
Informed:
Scheduling Lead
8.3.4.2 PMM-008-SCO-040-020 Review and Accept the WBS
Procedure: ● Supervision Consultant shall review and accept/reject the submitted

project Work Breakdown Structure.
● Cluster Scheduling Section Head shall upload the project Work
Breakdown Structure to NWC “Primavera P6” Database.
● NWC Project Manager shall append a printed copy of the WBS to the
Roles: Responsible: Supervision Consultant

NWC Project Manager
Consulted:
Contractor
NWC Project Manager
Informed:
Contractor
8.4 PMM-008-SCO-050 Control Scope

8.4.1 Objective
The objective of this process is to control changes to project scope, so that ad hoc changes
are prevented.
8.4.2 Policies
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1. Changes of the scope definition must be requested formally, accepted by all relevant
stakeholders, and then submitted through (PMM-007-INT-060 Variation Control)
process for business authorization to proceed.
2. Ad hoc scope changes (scope creep) are not allowed and must be prevented.
8.4.3 Flowchart
Figure 8-6 PMM-008-SCO-050 Control Scope Flowchart
8.4.4 Procedures
8.4.4.1 PMM-008-SCO-050-010 Draft a Scope Change
Procedure: ● Make a clear, written description of the scope change considering the
scope statement in the current Project Management Plan and highlight
proposed changes.
● The following stakeholders are authorized to raise a Variation Request:
○ Cluster Asset Management & Operation Excellence Director
○ Business Unit Construction Director
○ Cluster Technical Services Director
○ Design Consultant
○ Supervision Consultant
○ Contractor
Roles: Responsible: Relevant Stakeholder
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Informed:
Director
Director
8.4.4.2 PMM-008-SCO-050-020 Perform Engineering Team Peer Review for the Draft
Scope Change
Procedure: ● Distribute the new proposed scope statement based on the proposed
changes for initial review and comment of the Engineering Team.
● Engineering team shall review and develop comments.
● Retain a record of all design team comments.

Consulted:
Director
NWC Project Manager
Design Consultant
Contractor
8.4.4.3 PMM-008-SCO-050-030 Perform Impact Analysis for the Draft Scope Change
Procedure: ● Analyze the impact of the scope change.

● Perform Impact Analysis for the scope change.
● Retain all records of the impact analysis by a formal report.
NWC Project Manager
Roles: Responsible:
Consulted:
Director
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Informed: Cluster Technical Services Director
8.4.4.4 PMM-008-SCO-050-040 Finalize Updates of the Draft Scope Change
Procedure: ● Consolidate the proposed changes to the scope definition considering

the documented impact analysis.
● Collate the change supporting documents, with the revised scope
definition and impact analysis records.
NWC Project Manager
Roles: Responsible:
Informed: Cluster Contracts Administration Section Head
8.4.4.5 PMM-008-SCO-050-050 Process the Change Through the Variation Control

Process
Procedure: ● Complete the process as per (PMM-007-INT-060 Variation Control)

process.
● Update the Variation Register accordingly (PMF-007-INT-010 Project
Variation Register).
Informed: Supervision Consultant
8.4.4.6 PMM-008-SCO-050-060 Update the Project Management Plan as Per

Approved Variation
Procedure: ● Update the Project Management Plan as per Approved Variation.

● Update records and project documents for all affected items and upload
to the Enterprise Content Management System (ECMS).
● For an approved variation, ensure that a new baseline is created and
uploaded to the NWC “Primavera P6” Database and that this new
baseline is adopted by Second Parties as appropriate (Design
Consultant, Supervision Consultant , Contractor).
● Ensure implementing the changes in the approved variation.
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Consulted:
Informed:
8.5 PMM-008-SCO-055 Testing & Commissioning

8.5.1 Objective
The objective of this process is to identify the requirements and procedures for the Testing &
Commissioning (T&C) of installed systems/equipment/interfaces that Contractor creates. It is
also to identify the responsibilities and outputs of each party involved in the T&C process. It is
also to identify the holding points to be focused during the T&C Process from initial planning
stage to handover & close out stage.
8.5.2 Policies
1. The project scope section in Construction PMP must include a detailed T&C plan that
specifically and clearly identify the systems/equipment/interfaces (T&C Items) that
must be tested and commissioned.
2. All project systems/equipment/interfaces that included in the T&C Deliverable List
shall be tested and commissioned unless the list is changed after formal approval
form both the NWC Project Manager and Supervision Consultant Project Manager.
3. Testing and Commission must be managed by a T&C Working Team that formed by
T&C director at HQ. The T&C Working Team must include:
i. NWC Project Manager.
ii. Representatives from Cluster Asset Management & Operation Excellence.
iii. Representatives from Supervision Consultant
iv. Representatives from Contractor.
v. Representative from Cluster T&C Department.
vi. Representative from Cluster Technical Services Department.
4. T&C department shall decide on participation of the following parties in the T&C
Working Team:
i. Representative from T&C department at HQ for:
a. All Treatment Plants
b. All Storage Tanks
c. All projects of value ≥ SAR 50M except not pressurized networks.
ii. T&C Consultant (if assigned).
iii. Any Subject Matter Experts SME from inside and outside NWC (if required).
5. Testing and Commission in every project must have a project specific:
i. Testing and Commission Plan (T&C Plan)
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ii. Testing and Commission Method Statement (T&CMS)

6. The testing and commission results must be documented in a report by the T&C
Working Team and must be approved by T&C director at HQ.
7. Testing & Commissioning process can be performed on all project
systems/equipment/interfaces or part of them. If it is performed on part of the project
systems/equipment/interfaces, it must be re-performed with the complete systems.
8. Testing & Commissioning activities shall be described in Level 2 schedule (at
tendering stage) and Level 3 Schedule (Construction Stage).
9. The attachment (PMF-008-SCO-041 Project Testing & Commissioning Guideline) is
the reference for every procedure in this process.
8.5.3 Flowchart
Figure 8-7 PMM-008-SCO-055 Testing & Commissioning Flowchart
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8.5.4 Procedures
8.5.4.1 PMM-008-SCO-055-010 Pre-design T&C Activities
Procedure: ● Ensure the following at initial planning stage:

○ Development of preliminary OPR document.
○ Establishment of project regulatory requirements.
○ Establishment of codes to be used to design, execute and
commission the project scope.
○ Identification of the cost of T&C works.
○ Integration of the cost into the project budget.
○ Inclusion of the T&C responsibilities in the responsibilities of NWC
management team, Design Consultant, T&C Consultant and
Contractor.
● Develop the Preliminary T&C Scope.
● Develop the Preliminary T&C Plan.
● Use (PMF-008-SCO-041 Project Testing & Commissioning Guideline) as
a guideline during Initial Planning Stage.
NWC Project Manager
Roles: Responsible:
Cluster Testing & Commissioning Section Head
Testing & Commissioning Consultant
Testing & Commissioning Director
Consulted:
NWC Project Manager
NWC Project Manager
Informed:
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8.5.4.2 PMM-008-SCO-055-020 T&C Activities at Design Stage
Procedure: ● Participate in reviewing and approving the following (as applicable in the
project) which prepared by the design consultant and sequentially
submitted for approval.
● When Design Consultant inquires about any T&C aspect in the above
mentioned submittals, promptly clarify the inquiry.
● Review and approve the following which prepared and submitted along
with 90% design package:
○ Updated Preliminary T&C Method Statement (with checklists)
○ T&C Items list
○ Updated Preliminary T&C Plan
● Identify if there is a need for any addition T&C SME consultation during
T&C Method Statement development.
a guideline during Design Stage.
Roles: Responsible:
NWC Project Manager
Consulted:
NWC Project Manager
NWC Project Manager
Informed:
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8.5.4.3 PMM-008-SCO-055-030 T&C Activities During Tender for Construction Stage
Procedure: ● Ensure the inclusion of the T&C documents in project RFP:

○ Preliminary T&C Method Statement.
○ T&C Items list.
○ Preliminary T&C Plan.
● Ensure the inclusion of a criteria to assess bidders’ capability to perform
T&C process and procedures in project RFP.
● During Technical Evaluation process, with T&C Consultant (if assigned):
○ Respond to any clarification made by competing Contractors
regarding T&C aspects.
○ Assess capabilities of the bidding Contractors with regards to the
T&C Works (by T&C assessing criteria) during the technical
assessment process.
a guideline during Tender for Design Stage.
Roles: Responsible:
Accountable: Testing & Commissioning Director
Consulted:
Design Consultant
8.5.4.4 PMM-008-SCO-055-040 T&C Preparatory Works and Preparation of T&C

Documentations
Procedure: ● Continuously updates the T&C Plan and T&C Method Statement during
construction stage, for instance, incorporating the implemented
approved variations Accordingly.
● Complete preparatory works for T&C process. Preparatory work shall
include the following:
○ Signing-off of all Electro-mechanical installation.
○ Labelling and tagging for all electro-mechanical installation.
○ Preparing Lock-out and tag-out and any other HSE procedures and
measures.
○ Preparing all required calculations that proves the resiliency and
correctness of the installation that submitted and approved by the
Supervision Consultant and NWC Project Manager.
● Prepare all documentation and studies that are required for completion
of T&C process. These documentations include but not limited:
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○ Control System Data Point Schedule, Sequence of Operation,

Process and Instrumentation Diagram (PID), Control Block diagram
and Control Set Points.
○ Evacuation Plan.
○ As-Built Drawings.
○ Manufactures / Vendor contact list.
○ O&M manuals
○ Technical Data Sheets, Catalogs , etc.
○ Warranty certificates of equipment.
○ Calibration certifications.
○ GIS data (If required).
○ HAZOP and CHAZOP studies.
○ Short circuit analysis (a power study).
○ Coordination of Over Current Protective Devices (a power study).
○ Arc Flash Study (a power study).
● Update the OPR and RTM during the course of construction stage up to
Handover and Closeout stage to incorporate T&C requirements that
identified during the:
○ shop drawing development.
○ equipment selection.
○ development of the Systems Sequence of Operation.
○ approved variations implementation.
● At the end of construction stage, assure availability at site of all resources
that stated in the T&C Plan and T&C Method Statement to perform the
T&C activities such as potable water, drainage system, and
permanent/stable power.
a guideline during Construction Stage.

Consulted:
NWC Project Manager
Informed:
NWC Project Manager
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8.5.4.5 PMM-008-SCO-055-050 Supervision and Approval of Preparatory Works and

Documentations
Procedure: ● Ensure the completion of preparatory works for T&C process by the
Contractor. Preparatory works are identified in procedure (PMM-008-
SCO-055-040 T&C Preparatory Works and Preparation of T&C
Documentations).
● Ensure that, for all mechanical and electrical equipment, the following
documentation which required for T&C process have been submitted and
approved.
○ Factory Acceptance Testing (FAT) Certificates.
○ Type Testing Certificate (TTC).
● Review and approve all documentations and studies that are required for
completion of T&C process are available. These documentations are
identified in procedure (PMM-008-SCO-055-040 T&C Preparatory
Works and Preparation of T&C Documentations).
● Monitor, review and approve the updates that the Contractor have made
to the OPR, RTM and T&C Plan to incorporate T&C requirements that
identified during activities mentioned in procedure (PMM-008-SCO-055-
040 T&C Preparatory Works and Preparation of T&C Documentations).
● At the end of construction stage, ensure the availability and readiness of
all resources that stated in the T&C Plan and T&C Method Statement to
perform the T&C activities such as potable water, drainage system, and
permanent/stable power. Report any resource lack.
Roles: Responsible:
NWC Project Manager
Contractor
Consulted:
NWC Project Manager
Contractor
Informed:
NWC Project Manager
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8.5.4.6 PMM-008-SCO-055-060 Ensuring the Pass of Construction Tests
Procedure: ● Ensure that Contractor has passed all construction tests (site acceptance
tests and site integration tests) for mechanical and electrical installations
prior to conducting the T&C Works by verifying documentations that
proves the conducting and pass. Every unit should have a separate
accepted report using (PMF-008-SCO-043 Unit Test Report).
● Construction tests shall include the following:
○ Mechanical installation pressure testing.
○ Mechanical installation gravity or air testing.
○ Plumbing flow testing.
○ Leakage testing for HVAC ducts.
○ Complete mechanical system installation testing.
○ Electrical wiring continuity and insulation resistance testing.
○ Electrical cold testing.
○ All test for control wiring such as point-to-point testing and loop
testing.
Roles: Responsible:
NWC Project Manager
Contractor
Consulted:
NWC Project Manager
Contractor
Informed:
NWC Project Manager
8.5.4.7 PMM-008-SCO-055-070 Finalize T&C Plan and T&C Method Statement and
Submit for Approval
Procedure: ● Develop finalized version of T&C Plan and T&C Method Statement for
project systems/equipment/interfaces.
● Submit these two submittals to NWC, through the supervision consultant,
for review and approval.
a guideline during T&C Stage.
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Consulted:
NWC Project Manager
Informed:
NWC Project Manager
8.5.4.8 PMM-008-SCO-055-080 Approve T&C Plan and T&C Method Statement
Procedure: ● Supervision Consultant shall review and endorse the T&C Plan and T&C
Method Statement for project systems/equipment/interfaces that
prepared and submitted by Contractor then transmit the two submittals
to NWC Project Manager for further actions.
● NWC Project Manager shall transmit the two submittals to T&C
Consultant for review and endorsement.
● T&C Consultant shall review and endorse the two submittals then
transmit them back to NWC Project Manager for further actions.
● NWC shall review and endorse the two submittals then transmit them to
T&C Director.
● T&C Director shall review and approve the two submittals then transmit
them back to NWC Project Manager to send them to Contractor.
● During every review, ensure the conformity of these tow submittals to the
adopted codes, standards, and best construction practices.
a guideline during T&C Stage.
Roles: Responsible:
NWC Project Manager
Contractor
Consulted:
Contractor
Informed:
Cluster Projects GM
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8.5.4.9 PMM-008-SCO-055-090 Request for Testing & Commissioning Project Works
Procedure: ● Submit a written request to Cluster Projects GM for Testing &

Commissioning project systems/equipment/interfaces using (PMF-008-
SCO-042 Contractor Commissioning Request).
● The request shall be attached by evidence for:
○ T&C Plan approval.
○ T&C Method Statement approval.
○ Quality Control acceptance.
○ Construction tests for mechanical and electrical installation
acceptance.

Consulted:
NWC Project Manager
Director
8.5.4.10 PMM-008-SCO-055-100 Form T&C Working Group
Procedure: ● NWC Project Manager, in consultation with Supervision Consultant, shall

verify the submitted request and its attachments.
● if NWC Project Manager, accepts the request, he shall endorse the
request and request for T&C Working Group nominees as per identified
in policies in this process.
● After receiving nominations, NWC Project Manager shall create a
working group forming decision and raise it to Cluster Projects GM.
● Testing & Commissioning Director shall approve the request and forming
decision and transmit them to NWC Project Manager for further actions.
NWC Project Manager
Roles: Responsible:
Accountable: Testing & Commissioning Director
Consulted:
Cluster Projects GM
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Informed:
Director
NWC Project Manager
Contractor
External Subject Matter Experts (if required)
8.5.4.11 PMM-008-SCO-055-110 Pre-commissioning Activities at Testing &
Commissioning Stage
Procedure: ● Provide and install field devices that used in T&C activities according to
T&C schedule (part of the T&C plan).
● Confirm that re-certification shall be based on the date of completion of
installation (not on the date of the last test).
● Perform, with equipment suppliers if required, site Pre-Commissioning
Tests (trial runs) to test:
○ Equipment Pre-Start Up or Pre-energization Testing.
○ Functional or Operational testing.
○ Site Equipment Performance Testing.
● Perform, after third fix, tests for all cables in all systems which include
but not limited to:
○ High Voltage
○ Medium Voltage
○ Low Voltage
○ Extra Low Voltage (ELV)

Consulted:
Testing & Commissioning Working Group
NWC Project Manager
Informed:
NWC Project Manager
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8.5.4.12 PMM-008-SCO-055-120 Perform Commissioning Activities
Procedure: ● Contractor, in coordination with T&C Working Team (and equipment

suppliers if required), shall conduct Commissioning Tests after
energizing the electrical system.
● Commissioning Tests shall include tests as per specified in the T&C Plan
and T&C Method Statement (with its checklist).
● Firstly, the Contractor shall conduct all required tests for
systems/equipment/interfaces as stand-alone as applicable.
● Secondly, once all stand-alone tests are completed, Contractor, in
coordination with T&C Working Team, shall conduct Commissioning
Integration Tests (and any required integration works) for:
○ Fire/Life Safety Systems
○ Low Current Systems
○ Mechanical systems
○ Electro-Mechanical Systems
○ Control System
● Thirdly, upon the completion of Commissioning Integration Tests,
Contractor, in coordination with T&C Working Team, shall conduct
“Emergency Situation Test” to simulate an emergency situation during
the normal and peak operation of the facility.
○ The test shall require transfer of the electrical power from the normal
to essential using the emergency power system when all facility
systems are functioning. The test shall also include occupant
evacuation process and recording the evacuation time.
○ The Emergency Situation Test shall be repeated until all facility
systems are proven and working as a single system for the purpose
of functionality and safety.
● Fourthly, upon completion of commissioning Integration Test and
Emergency Test, Contractor, in coordination with T&C Working Team
(and equipment suppliers if required), shall conduct “Reliability Test” to
ensure that all systems are integrated and reliable to be operated
automatically (if included in SOW) for one month (or an agreed period by
T&C Working Team) with continuous run without interruption.
● If required, the testing shall be witnessed and accepted by any authority
such as Civil Defense, Authority Having Jurisdiction, etc.
Contractor
Roles: Responsible:
Consulted: Testing & Commissioning Director

Informed:
Cluster Projects GM
NWC Project Manager
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8.5.4.13 PMM-008-SCO-055-130 Issue T&C Working Group Report and T&C Report
Procedure: ● If the T&C Working Group found the T&C is acceptable:

○ T&C Working Group shall issue to Cluster Projects GM a T&C report
with a snag list stating the acceptance and recommending to issue
to Contractor:
- T&C Report (with acceptance).
OR
- T&C snag list and T&C Report (with acceptance with
comments).
○ Cluster Projects GM shall issue to Contractor:
- T&C Report (with acceptance) using (PMF-008-SCO-044
Commissioning Report).
OR
- T&C snag list and T&C Report (with acceptance with
comments) using (PMF-008-SCO-044 Commissioning Report).
● If the T&C Working Group found the T&C is not acceptable:
○ T&C Working Group shall issue to Cluster Projects GM a T&C report
with a snag list stating the fail and recommending issuing a T&C
Report (with rejection) to the Contractor.
○ Cluster Projects GM shall issue to the Contractor a T&C Report (with
rejection) using (PMF-008-SCO-044 Commissioning Report) and
directing Contractor to resolve the failure reasons and resubmit for
a new T&C process.
Roles: Responsible:
Cluster Projects GM

Informed:
NWC Project Manager
Contractor
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8.5.4.14 PMM-008-SCO-055-140 Post-Acceptance T&C Work
Procedure: ● Participate in Initial handover process as per (PMM-008-SCO-060 Initial

Acceptance and Handing Over of Project Scope)
● During handover, ensure that Contractor:
○ submits the O&M Manual, T&C records, System Manual, Spare part
list, Manufactures/Vendors contact list, Copy of Warranty certificates
and As-Built Drawings to prove the completeness of the System
testing to the Client.
○ receives a snag list clearance letter after he rectifies the snag list
items.
○ conduct training and orientation to the End-Users (O&M personnel)
for all systems and equipment.
NWC Project Manager
Roles: Responsible:

Informed:
Cluster Projects GM
NWC Project Manager
8.6 PMM-008-SCO-060 Total Initial Acceptance and Handover of Project

Scope
8.6.1 Objective
The objective of this process is to formalize the Total Initial Acceptance of the completed project
works that deliver all the functions that project is created to deliver.
8.6.2 Policies
1. All project scope must go through Initial Acceptance process whether partially or
totally.
2. Handover processes should be described in Construction Tender Documents and in
the construction bids. It should address the following:
● whether the project works to be handed over on a system basis, a building
completion basis, a total facility completion basis, or a combination of the three.
● the sequence of handing over if the project works are handed over system-by-
system.
● whether going to be a series of completion milestones before there is overall
Initial Acceptance?
● the Operation and Maintenance strategy for the post Initial Handover such as:
○ whether there is maintenance and operation item in the contract BOQ.
○ whether there is specific training.
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3. The Initial Acceptance process including acceptance decision and handing over must
be scheduled in the Project Schedule with sufficient resources and suitable durations.
4. No completed part of project scope shall be initially accepted unless it is verified
through quality control process.
5. No completed part of project scope shall be handed over unless it is initially accepted
through initial acceptance process.
6. If the Contractor does not submit initial acceptance request for not initially accepted
works by the project completion date, the cluster projects GM shall form a committee
to perform inventory on the actual executed and remaining works for further action as
per contract.
7. In case of that initial acceptance committee rejects the initial acceptance request, the
Contractor shall resolve the rejection reasons then resubmit another request.
8. Handing over the initially accepted works to O&M Department must immediately
follow the initial acceptance process. No lag time allowed without formal approval.
9. An initial acceptance committee, which will be formed after the Contractor requests
for initial acceptance, shall comprise at least representatives from the following
functions/departments:
● Cluster Projects Department
● Cluster Operation Excellence department
● Cluster Asset Management department
● Supervision Consultant
● Contractor
● External Subject Matter Expert (if needed).
10. Forming Initial Acceptance Committee shall be approved by:
● Capital Projects & Technical Services VP for:
○ All Treatment Plant Projects.
○ Any other project of a value ≥ 100M SAR.
● Cluster Senior GM for any project < 100M SAR that is not a treatment Plant
project.
11. The contractual “liability and operation” period starts from the Initial Acceptance and
handover date.
12. The final invoice is NOT to be paid to the contractor unless all the snag list items are
rectified.
13. In case the snag list items are awarded to another contractor, the final invoice is NOT
to be paid to the main contractor unless all the new contractor rectifies all snag list
items.
14. The handover process to O&M shall include:
● Ensuring the scope to be handed over is initially accepted.
● Handing over of as built and GIS drawings, O&M manuals and warranty
documents.
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● Physical handing over of the completed project works.

● Handing over of project records such as registers and certificates.
● Handing over project related software applications, databases and passwords.
● Handing over of spare parts and include them in one list.
● Training of operational staff.
● Handing over of keys.
● Addressing defects (if any) and its warranties.
● Undertaking contractual liability and operation period by Contractor.
● Assets information as per Assets Registration Manual template (from Asset
Management department).
15. If the committee could not perform initial acceptance and handover tests and operate
the project works due to reasons out of Contractor’s control, and estimated the
preventing reasons demise:
i. equals or less than six months from committee site visit date:
a. The committee shall prepare a Work Inventory Report.
b. Delay the Initial acceptance and handover till preventing reasons demise.
c. Performance of the preventive maintenance, security and storing of project
works and materials shall be by the Contractor or another contractor. This is
to be applied after negotiations with the contractor to perform these activities
at an agreed cost within current market prices in alignment with NWC
approved policies and procedures. If the committee does not reach an
agreement with the contractor, the committee is to request from Supply
Chain department for tendering the preventive maintenance, security and
storing of project works and materials in an independent Contract to another
contractor based on NWC approved policies and procedures.
d. In case the preventing reasons demised before the six months elapses,
perform initial acceptance and handover tests and operate the project works.
e. In case, six months elapsed without the preventing reasons demised go to
case “ii” below.
ii. more than six months from committee site visit date:
a. The committee shall prepare initial acceptance and handover certificate.
b. Assign the preventive maintenance, security and storing of project works and
materials to the Contractor at current market price in alignment with NWC
approved policies and procedures. If the committee does not reach an
agreement with the contractor, the committee is to request from Supply
Chain department for tendering the preventive maintenance, security and
storing of project works and materials in an independent Contract to another
contractor based on NWC approved policies and procedures.
c. Contractor final invoice to be paid after that contractor submits a commitment
letter to, once the preventing reasons demise, perform all:
- requirements of testing and operating the project works.
- rectifications due to poor contractor execution.
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- pay all costs for rectifying all defects on project executed works.
d. The commitment letter must be attested by the Chamber of Commerce.
e. Based on the assessment of the Initial Acceptance Committee, the
rectifications on project works needed due to:
- poor contractor execution shall be on the Contractor expense.
- delaying the initial acceptance and handover shall NOT be on Contractor
expense.
f. The Project Bank Guarantee shall be released to Contractor at the end of
the Liability Period.
g. If Contractor does not fulfill to his commitments in paragraph “c”, the following
shall be performed:
- Request from Supply Chain department for tendering to perform tests,
operate the project works or rectify the defects in an independent Contract
to another contractor based on NWC approved policies and procedures.
- Contact the Supply Chain to take formal actions as per NWC Vendor
Relations Procedure.
- Contact the Finance Department to assign a due back charge on the
Contractor to be deducted from his invoices in his other contracts with
NWC if any.
- If Contractor does not pay all required costs or the deduction is not
available, contact the Legal Department to take legal actions against the
contactor.
16. Handover shall be formalized in writing to provide clarity as to when responsibility for
the physical asset transferred.
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8.6.3 Flowchart
Figure 8-8 PMM-008-SCO-060 Initial Acceptance and Handover of Project Scope Flowchart
8.6.4 Procedures
8.6.4.1 PMM-008-SCO-060-010 Receive and Review the Initial Acceptance Request
Procedure: ● Receive the initial acceptance request from Contractor (PMF-008-SCO-

018 Contractor Initial Acceptance Request).
● Ensure with the Supervision Consultant that, the Contractor has stated
in the request that:
○ The clear identification of the scope that requested for acceptance
(whole scope / part of the scope) described as per BoQ description.
○ The completion of the scope that requested for acceptance.
○ The scope that requested for acceptance is quality controlled.
○ The availability of technicians and labors required for the inspection.
○ The Contractor representative for the Initial Acceptance Committee.
● Check the completion of the request attachments which must include but
not limited to the following:
○ Project Contract including all approved variation orders.
○ Issued for Construction drawings.
○ As built and GIS drawings.
○ Quality control acceptance records.
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○ O&M Manuals.
○ Spare Parts list (PMF-008-SCO-006 Spare Parts Record).
○ All Processed Claims.
○ Assets information as per the Assets Registration Manual template.
○ List of all project related:
- Records
- Software Applications
- Databases
- Passwords
● If the Contractor does not submit initial acceptance request by the project
completion date:
○ The cluster projects GM shall form a committee to perform inventory
on the actual executed and remaining works for further action as per
contract.
○ It shall be performed as per procedure (PMM-016-PRO-090-050
Develop a Project Works Inventory and Status Report at the Project
End Date) as part of withdraw process.
NWC Project Manager
Roles: Responsible:
Cluster Projects GM
Consulted: Contractor
Informed: Contractor
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8.6.4.2 PMM-008-SCO-060-020 Request Forming an Initial Acceptance Committee
Procedure: ● The NWC Project Manager shall request a representative from but not
limited to the following departments to participate in the Initial
Acceptance Committee:
○ Cluster Projects Department
○ Cluster Operation Excellence department
○ Cluster Asset Management department
○ Contractor
○ External Subject Matter Expert (if needed).
● The Cluster Projects GM shall raise a request for initial acceptance
committee forming within 2 days from receiving Contractor request,
mentioning the received nominated persons beside the Contractor
representative and attaching Contractor acceptance request. The NWC
Project Manager is to be designated, in the request, as the committee
coordinator. The request shall be in one of the following forms as per the
case:
○ PMF-008-SCO-015 Initial Acceptance Committee Forming Request
to Cluster
○ PMF-008-SCO-017 Initial Acceptance Committee Forming Request
to HQ
NWC Project Manager
Roles: Responsible:
Cluster Projects GM
Consulted:
Director
Contractor
External Subject Matter Expert (if needed)
Cluster Senior GM
Informed:
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8.6.4.3 PMM-008-SCO-060-030 Form Initial Acceptance Committee
Procedure: ● The raised forming request to the Cluster Senior GM is to do one of the
following:
○ raise it to the Capital Projects & Technical Services VP within 2 days
using (PMF-008-SCO-017 Initial Acceptance Committee Forming
Request to HQ) to form the committee for:
- All Treatment Plant Projects
- Any other Projects ≥ 100M SAR.
○ use the form (PMF-008-SCO-015 Initial Acceptance Committee
Forming Request to Cluster) to form the committee within 2 days for
any Project < 100M SAR except treatment Plants.
● If the Capital Projects & Technical Services VP receives the requests, he
shall form the committee within 3 days using the raised forms. He may
add additional committee members as necessary.
Cluster Senior GM / Capital Projects & Technical Services
Roles: Responsible:
VP (as per authority)
Accountable:
Cluster Projects GM
Consulted:
PMO GM
Cluster Senior GM
Informed:
Cluster Projects GM
Initial Acceptance Committee
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8.6.4.4 PMM-008-SCO-060-040 Perform Initial Acceptance Inspection
Procedure: ● After official committee formation, the committee shall conduct a meeting
to review the submitted documents to coordinate the committee
inspection activities.
● Conduct site visits to inspect the completed scope requested for initial
acceptance. Inspection shall include tests as required.
● Initial acceptance inspection shall cover ensuring the completion and
validating of the following:
1. Commissioning approval documents if the project includes
2. Operation and maintenance manuals of the works that requested
for acceptance are submitted.
3. Assets information as per the Assets Registration Manual
template of the works that requested for acceptance are filled and
submitted.
4. The spare parts, if contractually stated, is handed over to
Operation department using (PMF-008-SCO-006 Spare Parts
Record Template).
5. The training, if contractually stated, is provided to the assigned
Operation individual/team prior to the physical handing over and
accredited certificates are issued to the trained individual/team.
6. The Project IT items. This shall include, if any, project related
software applications, databases, passwords, warranty
documents and insurance documents.
7. The project records such as registers and certificates.
Roles: Responsible: Initial Acceptance Committee

Consulted:
Cluster Projects GM
Informed:
8.6.4.5 PMM-008-SCO-060-045 Prepare Initial Acceptance and Handover Certificate
/ Rejection Report / Inventory Report
Procedure: ● After site visits completion, the committee shall conduct a meeting to
agree on the inspection decision as follows:
1. If the committee monitored deficiencies that prevents the
functional use of the project works, the decision shall be reject the
initial handover. Using (PMF-008-SCO-012 Initial Handover
Rejection), an initial handover rejection report shall be prepared
and attached to the decision letter. The rejection report shall
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describe how the deficiencies prevent the functional use of the

project.
2. If the committee monitored deficiencies that does not prevent the
functional use of the project works, using (PMF-008-SCO-011
Initial Acceptance and Handover Certificate), an Initial Acceptance
and Handover Certificate shall be prepared. A snag list of the
deficiencies shall be prepared and attached as a copy to the
acceptance certificate for Contractor to rectify within maximum 60
days. Use (PMF-008-SCO-008 Snag List Template).
The Initial Acceptance Committee shall keep the original copy of
the Snag List to update it by acceptances for the rectified snag list
items then send a copy to the Contractor.
The Contractor shall be granted 60 days to complete all snag list
items. If any item requires more than 60 days for completion, the
NWC Project Manager shall raise a request to Scheduling &
Control GM for approval.
3. If the committee did not monitor any deficiency and ensured that
the functional use of the project fully exists, an acceptance
certificate shall be prepared using (PMF-008-SCO-011 Initial
Acceptance and Handover Certificate).
4. If the committee could not perform initial acceptance and handover
tests and operate the project works due to reasons out of
Contractor’s control, the Initial Acceptance Committee shall
estimate the duration of preventing reasons demise:
i. If the estimated duration equaled or less than six months from
committee site visit date the committee, using (PMF-008-
SCO-034 Work Inventory Report Due to Inability for IA&HO
Inspection), shall prepare an inventory report that adequately
describes and states at least the following:
a. executed works
b. supplied material
c. reasons that prevented testing and operating the project
works.
d. delay the initial acceptance and handover till preventing
reasons demise within six months.
ii. If the estimated duration was more than six months from
committee site visit date the committee shall prepare initial
acceptance and handover certificate using (PMF-008-SCO-
011 Initial Acceptance and Handover Certificate).
● This procedure shall be completed within 1 day.
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Consulted:
Cluster Projects GM
Informed:
8.6.4.6 PMM-008-SCO-060-050 Issue Initial Acceptance and Handover Certificate /
Rejection Report / Inventory Report
Procedure: ● All committee members shall sign the prepared Initial Acceptance and
Handover Certificate / Delay Report / Inventory Report.
● The committee coordinator shall raise the signed document to the
Cluster Senior GM for giving 1st approval / final approval (as per
authorization).
● Cluster Senior GM shall do one of the following (as per authorization):
○ Gives final approval on it.
○ Gives 1st approval then raise it to Projects & Technical Services GM
for final approval.
● If Capital Projects & Technical Services VP receives it (as per
authorization), he shall give final approval on it.
● After obtaining approvals:
○ In case of Initial Rejection Decision, issue the rejection report to the
Contractor with a cover letter describes the rejection decision.
○ In case of Initial Acceptance Decision:
- Issue the prepared Initial Acceptance and Handover Certificate
to the Contractor and finance department attaching the snag
list.
- The Contractor shall be granted 60 days to complete all snag
list items. if any item requires more than 60 days for rectification,
the following shall be done during the rectification period:
· Contractor shall request for additional rectification period.
· Based on the Contractor request, the NWC Project
Manager shall raise a request to Scheduling & Control GM
for approval.
- The contractual liability and operation period starts from the
Initial Acceptance date.
○ In case of Inventory report:
- issue the inventory report to the Contractor with a cover letter
describes the case using (PMF-008-SCO-035 Work Inventory
Letter to Contractor Due to Inability for IA&HO Inspection).
- Cluster Projects GM shall request from supply chain assigning
a Contractor to oversee the project executed works and perform
required periodic and preventive maintenance to it.
● This procedure to be completed within 60 days from the Contractor
request submission.
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Roles: Responsible:
Cluster Senior GM
Accountable:
Contractor
Informed:
Cluster Senior GM
Cluster Projects GM
Director
8.6.4.7 PMM-008-SCO-060-053 Actions to Recoup Inability to Handover for Less than
Six Months
Procedure: ● If the committee:

○ could not perform initial acceptance and handover tests operate the
project works due to reasons out of Contractor’s control
and
○ estimated the duration of preventing reasons demise equaled or less
than six months from committee site visit date:
then:
- Negotiate with the contractor to Perform the preventive
maintenance, security and storing of project works and
materials.
· If an agreement reached, formalize the agreement through
Supply Chain department.
· If the committee does not reach an agreement with the
contractor, request from supply chain for tendering the
preventive maintenance, security and storing of project
works and materials to another contractor via a closed
tender.
● NWC Project Manager shall escalate the preventing reasons to Cluster
Projects GM to resolve these issues.
● NWC Project Manager shall keep monitoring the issues resolving to
enable Initial Acceptance and handover.
● Once the preventing reasons demised before the six months elapses,
direct the Contractor to resubmit an initial acceptance and handover
request then perform initial acceptance and handover from procedure
(PMM-008-SCO-060-010 Receive and Review the Initial Acceptance
Request).
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Consulted:
Cluster Projects GM
Informed:
8.6.4.8 PMM-008-SCO-060-056 Actions to Recoup Inability to Handover for More than
Six Months
Procedure: ● If the committee could not perform initial acceptance and handover tests
operate the project works due to reasons out of Contractor’s control and:
○ the Initial Acceptance Committee estimated the duration of
preventing reasons demise more than six months from committee
site visit date.
or
○ the estimated preventing reasons in procedure (PMM-008-SCO-
060-053 Prepare Initial Acceptance and Handover Certificate /
Rejection Report / Inventory Report) exceeded six months.
then:
- issue initial acceptance and handover certificate to the
contractor using (PMF-008-SCO-011 Initial Acceptance and
Handover Certificate)
- Negotiate with the contractor to perform the preventive
maintenance, security and storing of project works and
materials at current market price.
· If an agreement reached, formalize the agreement through
Supply Chain department.
· If the committee does not reach an agreement with the
contractor, request from supply chain for tendering the
preventive maintenance, security and storing of project
works and materials to another contractor via a closed
tender.
- Direct the contractor to submit his final invoice with a
commitment letter to perform, once the preventing reasons
demise, all:
· requirements of testing and operating the project works.
· rectifications due to poor contractor execution.
The commitment letter must be attested by the Chamber of
Commerce.
● NWC Project Manager shall escalate the preventing reasons to Cluster
Projects GM to resolve these issues.
● NWC Project Manager shall keep monitoring the issues resolving to
enable Initial Acceptance and handover.
● Once the preventing reasons demised, direct Contractor to perform his
commitments in his commitment letter.
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● If Contractor does not fulfill to his commitments in his commitment letter,

the NWC Project Manager shall escalate for the followings:
○ Request from Supply Chain to tender the works rectification at
current market prices.
○ Request from the Supply Chain to take formal actions as per NWC
Vendor Relations Management Procedure.
○ Request from the Finance Department to assign a due back charge
on the Contractor to be deducted from his invoices in his other
contracts with NWC if any.
○ If deduction is not available, request from the Legal Department to
take legal actions against the contactor.

Consulted:
Cluster Projects GM
Informed:
8.6.4.9 PMM-008-SCO-060-058 Issue Warning Letter Due to Not Request for
Inspection for Snag List Rectification
Procedure: ● If the Contractor does not request for inspecting the snag list fulfilment
within 60 days from the snag list issuance, Cluster Projects GM shall
issue a warning letter to Contractor to complete in 15 days using (PMF-
008-SCO-021 Warning Letter due to Not Request for Inspection for IHO
Snag List Rectification).

NWC Project Manager
Consulted:
Contractor
Informed:
NWC Project Manager
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8.6.4.10 PMM-008-SCO-060-059 Rectify the Snag List Items by Another Contractor on

Main Contractor Expense
Procedure: ● If the Contractor, after 15 days from the warning letter issuance, does
not request for re-inspecting the snag list fulfilment, Cluster Projects GM
shall, within 1 day, request from supply chain assigning another
Contractor to complete the rectification on Contractor expense. The
request shall be attached by:
○ Detailed description for the snag list items (suitable for tendering).
○ Initial Acceptance and Handover Certificate.
○ Warning Letter to Contractor.
● After receiving the selected bid price from supply chain, submit to
Finance department the following to create budget allocation number:
○ The price that selected by Supply Chain.
○ The final invoice including a deduction equals to the cost of the
selected price.
● After receiving budget allocation number from Finance department,
prepare the Purchase Requisition (PR) attaching (PMF-016-PRO-005
PR Approval Form) to reserve the project budget.
● Raise the Purchase Requisition (PR) to Supply Chain for issuing a PO to
the new contractor.

NWC Project Manager
Consulted:
Contractor
Informed:
NWC Project Manager
8.6.4.11 PMM-008-SCO-060-060 Inspect Snag List Fulfilment
Procedure: ● If the Contractor requests to re-inspect the Snag list fulfilment within (60
days from the snag list issuance) or (15 days form the warning letter):
○ the project manager shall coordinate to conduct a site visit to
perform the requested inspection.
○ The Initial Acceptance Committee shall complete the inspection
within 7 days from the Contractor snag inspection request.
● Update the snag list by accepting the rectified snag list items then send
a copy to the Contractor.
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Contractor
Informed:
Cluster Projects GM
Director
Finance Department
8.6.4.12 PMM-008-SCO-060-063 Issue Warning Letter Due to Incomplete Snag List
Rectification
Procedure: ● After completing the site visits of inspecting snag list fulfilment, if the
inspection found that, not all deficiencies are rectified, the cluster projects
GM shall issue a warning letter to Contractor to complete the rectification
within 15 days using (PMF-008-SCO-031 Warning Letter due to
Incomplete IA&HO Snag List Rectification).

Contractor
Informed:
NWC Project Manager
8.6.4.13 PMM-008-SCO-060-066 Re-Inspect Snag List Fulfilment after 15 Days from
Warning Letter
Procedure: ● After 15 days form the warning letter, the project manager shall
coordinate to conduct a site visit to perform inspection.
● Initial Acceptance Committee shall complete the re-inspection within 7
days from the inspection date that stated in the warning letter.
● After completing the site visits of re-inspecting snag list fulfilment:
○ if the inspection found that, all deficiencies are rectified, update the
snag list by accepting the rectified snag list items then send a copy
to the Contractor.
○ if the inspection found that, not all deficiencies are rectified, Cluster
Projects GM shall, within 1 day, request from supply chain assigning
another Contractor to complete the rectification on Contractor
expense at current market price.
Roles: Responsible:
Cluster Projects GM
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Consulted: External Subject Matter Expert (if needed)

Informed:
Director
Contractor
8.6.4.14 PMM-008-SCO-060-070 Inspect IA&HO Rectified Snag List by Another
Contractor at Contractor’s Expense
Procedure: ● After rectifying the outstanding snag list items at Contractor expense and
receiving a request to inspect the outstanding deficiencies list fulfilment,
the NWC Project Manager shall coordinate to conduct a site visit to
● Conduct a site visit and inspect the snag list fulfilment. Inspection shall
include tests as required. The inspection is to be completed within 7 days
from the other Contractor snag inspection request.
● After site visits completion and ensuring the outstanding deficiencies
fulfilment, the snag list shall be closed and a closing notification shall be
issued to Contractor to proceed with final invoice submission within 3
days.

Informed:
Director
Contractor
8.7 PMM-008-SCO-065 Partial Initial Acceptance and Handover of Project
Scope
8.7.1 Objective
The objective of this process is to formalize the Partial Initial Acceptance of the completed parts
of the project works that deliver part of the functions that project is created to deliver.
8.7.2 Policies
1. All project scope must go through Initial Acceptance process whether partially or
totally.
2. Handover processes should be described in Construction Tender Documents and in
the construction bids. It should address the following:
● whether the project works to be handed over on a system basis, a building
completion basis, a total facility completion basis, or a combination of the three.
● the sequence of handing over if the project works are handed over system-by-
system.
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● whether going to be a series of completion milestones before there is overall

Initial Acceptance?
● the Operation and Maintenance strategy for the post Initial Handover such as:
○ whether there is maintenance and operation item in the contract BOQ.
○ whether there is specific training.
3. The Initial Acceptance process including acceptance decision and handing over must
be scheduled in the Project Schedule with sufficient resources and suitable durations.
4. Initial acceptance request for a PART of executed works (partial initial acceptance
request) to be processed only if:
i. It is scheduled in the approved project schedule.
ii. The part of works is a system that can deliver the function that project is created
to deliver (Project Purpose) and can be put in service.
iii. If one or more of the above are not fulfilled, the partial initial acceptance request
is to be raised to Scheduling & Control GM to assess if to be processed or not.
5. No completed part of project scope shall be initially accepted unless it is verified
through quality control process.
6. No completed part of project scope shall be handed over unless it is initially accepted
through initial acceptance process.
7. In case of that Partial Initial Acceptance Committee rejects the initial acceptance
request, the Contractor shall resolve the rejection reasons then resubmit another
request.
8. Handing over the initially accepted works to O&M Department must immediately
follow the initial acceptance process. No lag time allowed without formal approval.
9. A Partial Initial Acceptance Committee, which will be formed after the Contractor
requests for initial acceptance, shall comprise at least representatives from the
following functions/departments:
● Cluster Projects Department
● Cluster Operation Excellence department
● Cluster Asset Management department
● Supervision Consultant
● Contractor
10. Forming Partial Initial Acceptance Committee shall be approved by:
● Capital Projects & Technical Services VP for:
○ All Treatment Plant Projects.
○ Any other project of a value ≥ 100M SAR.
● Cluster Senior GM for any project < 100M SAR that is not a treatment Plant
project.
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11. The contractual “liability and operation” period starts from the Initial Acceptance and
handover date.
12. The handover process to O&M shall include:
● Ensuring the scope to be handed over is initially accepted.
● Handing over of as built and GIS drawings, O&M manuals and warranty
documents.
● Physical handing over of the completed project works.
● Handing over of project records such as registers and certificates.
● Handing over project related software applications, databases and passwords.
● Handing over of spare parts and include them in one list.
● Training of operational staff.
● Handing over of keys.
● Addressing defects (if any) and its warranties.
● Undertaking contractual liability and operation period by Contractor.
● Assets information as per Assets Registration Manual template (from Asset
Management department).
13. If the committee could not perform acceptance and handover tests and operate the
project works due to reasons out of Contractor’s control, works shall remain under
contractor custody till the project end. If then reasons are not demised, policy 13 in
the process (PMM-008-SCO-060 Total Initial Acceptance and Handover of Project
Scope).
14. Handover shall be formalized in writing to provide clarity as to when responsibility for
the physical asset transferred.
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8.7.3 Flowchart
Figure 8-9 PMM-008-SCO-065 Initial Acceptance and Handover of Project Scope Flowchart
8.7.4 Procedures
8.7.4.1 PMM-008-SCO-065-010 Receive and Review the Partial Initial Acceptance
Request
Procedure: ● Receive the Partial Initial Acceptance Request from Contractor (PMF-
008-SCO-027 Contractor Partial Initial Acceptance Request).
● Ensure with the Supervision Consultant that, the Contractor has stated
in the request that:
○ The clear identification of the scope that requested for acceptance
(whole scope / part of the scope) described as per BoQ description.
○ The completion of the scope that requested for acceptance.
○ The scope that requested for acceptance is quality controlled.
○ The Contractor representative for the Partial Initial Acceptance
Committee.
○ Project Contract including all approved variation orders.
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○ Issued for Construction drawings.

○ As built and GIS drawings.
○ Quality control acceptance records.
○ O&M Manuals.
○ Spare Parts list (PMF-008-SCO-006 Spare Parts Record).
○ All Processed Claims.
○ Assets information as per the Assets Registration Manual template.
○ List of all project related:
- Records
- Software Applications
- Databases
- Passwords
NWC Project Manager
Roles: Responsible:
Cluster Projects GM
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8.7.4.2 PMM-008-SCO-065-020 Request Forming a Partial Initial Acceptance

Committee
Procedure: ● The NWC Project Manager shall request a representative from but not
limited to the following departments to participate in the Partial Initial
Acceptance Committee:
○ Cluster Projects Department
○ Contractor
● The Cluster Projects GM shall raise a request for Partial Initial
Acceptance Committee forming within 2 days from receiving Contractor
request, mentioning the received nominated persons beside the
Contractor representative and attaching Contractor acceptance request.
The NWC Project Manager is to be designated, in the request, as the
committee coordinator. The request shall be in one of the following forms
as per the case:
○ PMF-008-SCO-025 Partial Initial Acceptance Committee Forming
Request to Cluster
○ PMF-008-SCO-026 Partial Initial Acceptance Committee Forming
Request to HQ
NWC Project Manager
Roles: Responsible:
Cluster Projects GM
Consulted:
Director
Contractor
Cluster Senior GM
Informed:
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8.7.4.3 PMM-008-SCO-065-030 Form Partial Initial Acceptance Committee
Procedure: ● The raised forming request to the Cluster Senior GM is to do one of the
following:
○ raise it to the Capital Projects & Technical Services VP within 2 days
using (PMF-008-SCO-026 Partial Initial Acceptance Committee
Forming Request to HQ) to form the committee for:
- All Treatment Plant Projects
- Any other Projects ≥ 100M SAR.
○ use the form (PMF-008-SCO-025 Partial Initial Acceptance
Committee Forming Request to Cluster) to form the committee
within 2 days for any Project < 100M SAR except treatment Plants.
● If the Capital Projects & Technical Services VP receives the requests, he
shall form the committee within 3 days using the raised forms. He may
add additional committee members as necessary.
Roles: Responsible:
Accountable:
Cluster Projects GM
Consulted:
PMO GM
Cluster Senior GM
Informed:
Cluster Projects GM
Partial Initial Acceptance Committee
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8.7.4.4 PMM-008-SCO-065-040 Perform Partial Initial Acceptance Inspection
● Conduct site visits to inspect the completed scope requested for partial
initial acceptance. Inspection shall include tests as required.
● Partial initial acceptance inspection shall cover ensuring the completion
and validating of the following:
1. Commissioning approval documents if the project includes
2. Operation and maintenance manuals of the works that requested
for acceptance are submitted.
3. Assets information as per the Assets Registration Manual
template of the works that requested for acceptance are filled and
submitted.
4. The spare parts, if contractually stated, is handed over to
Operation department using (PMF-008-SCO-006 Spare Parts
Record Template).
5. The training, if contractually stated, is provided to the assigned
Operation individual/team prior to the physical handing over and
accredited certificates are issued to the trained individual/team.
6. The Project IT items. This shall include, if any, project related
software applications, databases, passwords, warranty
documents and insurance documents.
7. The project records such as registers and certificates.
Roles: Responsible: Partial Initial Acceptance Committee

Consulted:
Cluster Projects GM
Informed:
8.7.4.5 PMM-008-SCO-065-045 Prepare Partial Initial Acceptance and Handover
Certificate / Rejection Report / Inventory Report
agree on the inspection decision as follows:
1. If the committee monitored deficiencies that prevents the
functional use of the project works, the decision shall be reject the
initial handover. Using (PMF-008-SCO-024 Partial Initial
Handover Rejection), an initial handover rejection report shall be
prepared and attached to the decision letter. The rejection report
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shall describe how the deficiencies prevent the functional use of

the project.
2. If the committee monitored deficiencies that does not prevent the
functional use of the project works, using (PMF-008-SCO-023
Partial Initial Acceptance and Handover Certificate), an Initial
Acceptance and Handover Certificate shall be prepared. A snag
list of the deficiencies shall be prepared and attached as a copy to
the acceptance certificate for Contractor to rectify within maximum
60 days. Use (PMF-008-SCO-008 Snag List Template).
The Partial Initial Acceptance Committee shall keep the original
copy of the Snag List to update it by acceptances for the rectified
snag list items then send a copy to the Contractor.
The Contractor shall be granted 60 days to complete all snag list
items. If any item requires more than 60 days for completion, the
NWC Project Manager shall raise a request to Scheduling &
Control GM for approval.
3. If the committee did not monitor any deficiency and ensured that
the functional use of the project fully exists, an acceptance
certificate shall be prepared using (PMF-008-SCO-023 Partial
Initial Acceptance and Handover Certificate)
4. If the committee could not perform initial acceptance and handover
tests and operate the project works due to reasons out of
Contractor’s control, using (PMF-008-SCO-034 Work Inventory
Report Due to Inability for IA&HO Inspection), the Partial Initial
Acceptance Committee shall prepare an inventory report that
adequately describes and states at least the following:
i. executed works
ii. supplied material
iii. reasons that prevented testing and operating the project
works.
iv. delay the initial acceptance and handover till preventing
reasons demise within six months.
● This procedure shall be completed within 1 day.

Consulted:
Cluster Projects GM
Informed:
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8.7.4.6 PMM-008-SCO-065-050 Issue Initial Acceptance and Handover Certificate /

Rejection Report / Inventory Report
Procedure: ● All committee members shall sign the prepared Initial Acceptance and
Handover Certificate / Rejection Report / Inventory Report.
● The committee coordinator shall raise the signed document to the
Cluster Senior GM for giving 1st approval / final approval (as per
authorization).
● Cluster Senior GM shall do one of the following (as per authorization):
○ Gives final approval on it.
○ Gives 1st approval then raise it to Projects & Technical Services GM
for final approval.
● If Capital Projects & Technical Services VP receives it (as per
authorization), he shall give final approval on it.
● After obtaining approvals:
○ In case of Initial Rejection Decision, issue the rejection report to the
Contractor with a cover letter describes the rejection decision.
○ In case of Initial Acceptance Decision:
- Issue the prepared Initial Acceptance and Handover Certificate
to the Contractor and finance department attaching the snag
list.
- The Contractor shall be granted 60 days to complete all snag
list items. if any item requires more than 60 days for rectification,
the following shall be done during the rectification period:
· Contractor shall request for additional rectification period.
· Based on the Contractor request, the NWC Project
Manager shall raise a request to Scheduling & Control GM
for approval.
- The contractual liability and operation period starts from the
Initial Acceptance date.
○ In case of Inventory report:
- issue the inventory report to the Contractor with a cover letter
describes the case using (PMF-008-SCO-035 Work Inventory
Letter to Contractor Due to Inability for IA&HO Inspection).
● This procedure to be completed within 60 days from the Contractor
request submission.
Roles: Responsible:
Cluster Senior GM
Accountable:
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Contractor
Informed:
Cluster Senior GM
Cluster Projects GM
Director
8.7.4.7 PMM-008-SCO-065-058 Issue Warning Letter Due to Not Request for
008-SCO-021 Warning Letter due to Not Request for Inspection for IHO
● If the Contractor, after 15 days from the warning letter issuance, does
Contractor to complete the rectification on Contractor expense.

NWC Project Manager
Consulted:
Contractor
Informed:
NWC Project Manager
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8.7.4.8 PMM-008-SCO-065-059 Rectify the Snag List Items by Another Contractor on

Main Contractor Expense
Procedure: ● If the Contractor, after 15 days from the warning letter issuance, does
Contractor to complete the rectification on Contractor expense. The
request shall be attached by:
○ Detailed description for the snag list items (suitable for tendering).
○ Warning Letter to Contractor.
● After receiving the selected bid price from supply chain, submit to
Finance department the following to create budget allocation number:
○ The price that selected by Supply Chain.
○ The final invoice including a deduction equals to the cost of the
selected price.
● After receiving budget allocation number from Finance department,
prepare the Purchase Requisition (PR) attaching (PMF-016-PRO-005
PR Approval Form) to reserve the project budget.
● Raise the Purchase Requisition (PR) to Supply Chain for issuing a PO to
the new contractor.

NWC Project Manager
Consulted:
Contractor
Informed:
NWC Project Manager
8.7.4.9 PMM-008-SCO-065-060 Inspect Snag List Fulfilment
Procedure: ● If the Contractor requests to re-inspect the Snag list fulfilment within (60
days from the snag list issuance) or (15 days form the warning letter):
○ The Partial Initial Acceptance Committee shall complete the
inspection within 7 days from the Contractor snag inspection
request.
● Update the snag list by accepting the rectified snag list items then send
a copy to the Contractor.
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Contractor
Informed:
Cluster Projects GM
Director
Finance Department
8.7.4.10 PMM-008-SCO-065-063 Issue Warning Letter Due to Incomplete Snag List
Rectification
Procedure: ● After completing the site visits of inspecting snag list fulfilment, if the
inspection found that, not all deficiencies are rectified, the cluster projects
GM shall issue a warning letter to Contractor to complete the rectification
within 15 days using (PMF-008-SCO-031 Warning Letter due to
Incomplete IA&HO Snag List Rectification).

Contractor
Informed:
NWC Project Manager
Warning Letter
● Partial Initial Acceptance Committee shall complete the re-inspection
within 7 days from the inspection date that stated in the warning letter.
● After completing the site visits of re-inspecting snag list fulfilment:
○ if the inspection found that, all deficiencies are rectified, update the
snag list by accepting the rectified snag list items then send a copy
to the Contractor.
○ if the inspection found that, not all deficiencies are rectified, Cluster
Projects GM shall, within 1 day, request from supply chain assigning
another Contractor to complete the rectification on Contractor
expense
Roles: Responsible:
Cluster Projects GM
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Informed:
Director
Contractor
8.7.4.12 PMM-008-SCO-065-070 Inspect Rectified Snag List by Another Contractor at
Contractor’s Expense
receiving a request to inspect the outstanding deficiencies list fulfilment,
the NWC Project Manager shall coordinate to conduct a site visit to
● After site visits completion and ensuring the outstanding deficiencies
fulfilment, the snag list shall be closed and a closing notification shall be
issued to Contractor to proceed with final invoice submission within 3
days.

Informed:
Director
Contractor
8.8 PMM-008-SCO-070 Final Acceptance of Project Scope
8.8.1 Objective
The objective of this process is to formalize the final acceptance of the completed project
deliverables.
8.8.2 Policies
1. All project scope must go through validation Final Acceptance process and must
meets Final Acceptance Committee acceptance.
2. No completed part of project scope shall be finally accepted unless it is initially
accepted through initial acceptance process.
3. Final Acceptance should not have any Deficiencies or Snag list items.
4. The Final Acceptance process itself must be detail described in the Project
Management Plan.
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5. The whole Final Acceptance process including acceptance decision must be

scheduled as per contract conditions of the liability and operation period.
6. A Final Acceptance committee, which will be established after the Contractor requests
for final acceptance, shall comprise at least one representative of the following
functions/departments:
● Projects & Technical Services department
● Business Unit Projects Department
● Cluster Scope Department
● Cluster Technical Services Department
● Cluster Project Contract Department
● Cluster Operation Excellence Department
● Cluster Asset Management & Operation Excellence department
● Contractor
7. Absence of all Deficiencies at the time of inspection by the Final Acceptance
Committee will entitle the Contractor to the final acceptance and handover.
8. Existence of any Deficiencies at the time of inspection by the Final Acceptance
Committee will result in postponing the decision to the Contractor final acceptance
request. Snag list of deficiencies shall be issued by the committee to the Contractor
clearly describes the deficiencies. Contractor shall be granted a period for rectifying
the snag list.
9. Records of final acceptance and handover shall be recorded using the Enterprise
Content Management System (ECMS).
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8.8.3 Flowchart
Figure 8-10 PMM-008-SCO-070 Final Acceptance of Project Scope Flowchart
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8.8.4 Procedures
8.8.4.1 PMM-008-SCO-070-010 Receive and Review the Final Acceptance Request
Procedure: ● Receive the final acceptance request from Contractor after the
contractual liability and operation period finish.
● Ensure the Contractor has stated in the request that:
○ The clear identification of the scope part that requested for
acceptance (Whole Scope / Section of the scope).
○ The requested scope was initially accepted.
○ The Contractor representative for the Final Acceptance Committee.
○ Initial acceptance certificate.
○ Snag list closing notification.
○ Project Contract including approved Variation Orders documents.
○ Contractor(s) Clearance Certificate(s) from relevant stakeholders.
● If the contractor does not submit a Final Handover Request when it is
due, NWC Project Manager shall officially inform the contractor to submit
his nominees for the Final Handover Committee stating a deadline for
the contractor response. Whether the contractor respond or not by the
stated deadline, NWC Project Manager shall proceed to the next
procedure.
8.8.4.2 PMM-008-SCO-070-010 Issue Warning Letter due to Not Request for Final
Acceptance and Handover
Procedure: ● If the Contractor does not request for Final Acceptance and Handover by
the liability period end date, Cluster Projects GM shall issue a warning
letter to Contractor to submit the request within 15 days using (PMF-008-
SCO-046 Warning Letter due to Not Request for FA&HO).
not request for Final Acceptance and Handover, proceed in Final
Acceptance and Handover process by performing procedure (PMM-008-
SCO-070-020 Request Forming a Final Acceptance Committee) without
contractor participation.
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NWC Project Manager
Consulted:
Contractor
Informed:
NWC Project Manager
8.8.4.3 PMM-008-SCO-070-020 Request Forming a Final Acceptance Committee
Procedure: ● The NWC Project Manager request a representative from but not limited
to the following departments to participate in the Final Acceptance
Committee:
○ Projects & Technical Services department.
○ Business Unit Projects Department.
○ Cluster Project Contract Department.
○ Cluster Asset Management & Operation Excellence Department.
● Cluster Projects GM shall raise a request to the Cluster Senior GM for
final acceptance committee forming within 5 days from receiving
Contractor request, including the received nominated persons beside the
Contractor representative and attaching Contractor final acceptance
request. The NWC Project Manager is to be designated, in the request,
as the committee coordinator.
NWC Project Manager
Roles: Responsible:
Cluster Projects GM
Consulted:
Director
Contractor
8.8.4.4 PMM-008-SCO-070-030 Form Final Acceptance Committee
Procedure: ● The Cluster Senior GM shall approve the committee formation within 7
days using (PMF-008-SCO-016 Final Acceptance Committee Forming
Request).
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Cluster Projects GM
Consulted:
PMO GM
Cluster Projects GM
Informed:
Final Acceptance Committee
8.8.4.5 PMM-008-SCO-070-040 Perform Final Acceptance Inspection
● Conduct site visits to inspect the scope requested for final acceptance to
perform inspection and ensure that there are no deficiencies. Inspection
shall include tests as required.
● The inspection is to be completed within 14 days.
Roles: Responsible: Final Acceptance Committee

Consulted:
Director
Cluster Projects GM
Informed:
8.8.4.6 PMM-008-SCO-070-043 Issue Snag List
agree on the inspection decision.
○ If any deficiency found, the decision shall be postponing the final
acceptance. The committee shall prepare and issue to Contractor a
snag list within 7 days from inspection completion using (PMF-008-
SCO-008 Snag List Template). The list must clearly describe the
deficiencies. Contractor shall be granted 28 days for rectifying the
outstanding deficiencies then send a re-inspection request.
○ If no deficiencies monitored and the functional use of the
project fully achieved, perform (PMM-008-SCO-070-043 Issue
Final Acceptance and Handover Report).
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Contractor
Informed:
Cluster Senior GM
Cluster Projects GM
Director
8.8.4.7 PMM-008-SCO-070-046 Issue Warning Letter due to Not Request for
008-SCO-022 Warning Letter due to Not Request for Inspection for FHO

NWC Project Manager
Consulted:
Contractor
Informed:
NWC Project Manager
8.8.4.8 PMM-008-SCO-070-050 Inspect Snag List Items Fulfilment
Procedure: ● If Contractor requests to re-inspect the Snag list fulfilment within (28 days
from the snag list issuance) or (15 days form the warning letter):
○ The final Acceptance Committee shall complete the inspection
within 7 days from the Contractor snag inspection request.

Consulted:
Director
Cluster Projects GM
Informed:
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8.8.4.9 PMM-008-SCO-070-053 Issue Warning Letter due to Not Complete Snag List
Rectification
agree on the inspection decision.
○ If the inspection found that, some or all snag list items are not
rectified:
- The decision shall be:
· Updating the snag list.
· Issuing a warning letter to Contractor to rectify within 15
days using (PMF-008-SCO-032 Warning Letter due to
Incomplete FA&HO Snag List Rectification).
- The snag list updating and warning letter issuance are to be
completed within 2 days.
○ If no deficiencies monitored and the functional use of the project fully
achieved, perform (PMM-008-SCO-070-043 Issue Final Acceptance
and Handover Report).

NWC Project Manager
Consulted:
Contractor
Informed:
NWC Project Manager
Warning Letter
● Final Acceptance Committee shall complete the re-inspection within 7
days from the inspection date that stated in the warning letter.
● After completing the site visits of re-inspecting snag list fulfilment, if the
inspection found that, not all deficiencies are rectified, Cluster Projects
GM shall, within 1 day, request from supply chain assigning another
Roles: Responsible:
Cluster Projects GM
Consulted:
Director
Cluster Projects GM
Informed:
00_PT03_MN_002.02 347 of 751 05/01/2022

8.8.4.11 PMM-008-SCO-070-060 Inspect FA&HO Rectified Snag List by Another

Contractor at Contractor’s Expense
receiving a request to inspect the outstanding snag list fulfilment, the
committee shall coordinate to conduct a site visit to perform the
requested inspection.
● After site visits completion and ensuring the snag list fulfilment and the
functional use of the project existence, the committee shall conduct a
meeting to agree on closing the snag list, accepting the final acceptance
decision and preparing the final acceptance certificate.

Consulted:
Director
Cluster Projects GM
Informed:
8.8.4.12 PMM-008-SCO-070-070 Issue Final Acceptance and Handover Certificate
Procedure: ● In the meeting conducted by the committee after the site visits completion
to agree on the inspection decision, if no deficiencies monitored and the
functional use of the project fully achieved:
○ Ensure that, the Contractor has archived and handed over all project
documents.
○ The decision will be acceptance and a final acceptance certificate
shall be prepared within 2 days using (PMF-008-SCO-013 Final
Acceptance Certificate).
○ Cluster Senior GM shall approve and issue the final acceptance and
Handover certificate to Contractor within 3 days.
● NWC Project Manager shall notify related stakeholder and proceed with
project closure.
Roles: Responsible:
Cluster Senior GM
NWC Project Manager
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Contractor
Informed:
Cluster Senior GM
Cluster Projects GM
Director
The table below identifies the KPIs of Project Scope Management. The NWC Project Manager is
responsible to measure and report these KPIs at each KPI stated frequency. The current status of
each KPI is to be reflected in the monthly project progress report.
Table 8-1 Project Scope Management KPIs

Detail Measurement
projects that tendered
NOT as per the following
criteria in the cluster:
Design detail level - tender with design 30%
1 Monthly 0 NA >0
for tendering for design & build
projects.
- tender with design
100% for construction
projects.
that initially handed over
2 T&C report without a T&C report Monthly 0 NA >0
with “acceptance” or
“acceptance with
comments”.
projects that its initial
Duration for acceptance committee
combining an initial has been combined in
3 acceptance more than 4/7 calendar Monthly 0 3 >3
committee at days (as per authority)
cluster from contractor initial
acceptance request
submission date.
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Detail Measurement
projects that its initial
acceptance committee
Duration for initial
has responded after
acceptance
4 more than 60 calendar Monthly 0 3 >3
committee
days from contractor
response
initial acceptance
request submission
date.
projects that its final
Duration for
combining a final
has been combined in
5 acceptance Monthly 0 3 >3
more than 12/27
committee at
calendar days (as per
cluster
case) from liability
period end date.
projects that its final
Duration for final
has performed the
6 acceptance Monthly 0 3 >3
inspection in more than
inspection
14 calendar days from
committee formation
date.
8.10 Attachments
SCO Project Scope Management).
Table 8-2 Project Scope Management forms, templates and guidelines
Document No. Title
EPM-KE0-PR-000002 Design Review Procedure
PMF-008-SCO-004 Engineering Closeout Checklist
PMF-008-SCO-006 Spare Parts Record Template
PMF-008-SCO-008 Snag List Template
PMF-008-SCO-011 Initial Acceptance and Handover Certificate
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Document No. Title
PMF-008-SCO-012 Initial Acceptance and Handover Rejection
PMF-008-SCO-013 Final Acceptance and Handover Certificate
PMF-008-SCO-015 Initial Acceptance and Handover Committee Forming Request to Cluster
PMF-008-SCO-016 Final Acceptance and Handover Committee Forming Request
PMF-008-SCO-017 Initial Acceptance and Handover Committee Forming Request to HQ
PMF-008-SCO-018 Contractor Initial Acceptance and Handover Request
PMF-008-SCO-021 Warning Letter due to Not Request for Inspection for IA&HO Snag List
Rectification
PMF-008-SCO-022 Warning Letter due to Not Request for Inspection for FA&HO Snag List
Rectification
PMF-008-SCO-023 Partial Initial Acceptance and Handover Certificate
PMF-008-SCO-024 Partial Initial Acceptance and Handover Rejection
PMF-008-SCO-025 Partial Initial Acceptance and Handover Committee Forming Request to

Cluster
PMF-008-SCO-026 Partial Initial Acceptance and Handover Committee Forming Request to

HQ
PMF-008-SCO-027 Contractor Partial Initial Acceptance and Handover Request
PMF-008-SCO-028 Contractor Final Acceptance and Handover Request
PMF-008-SCO-029 Contractor Partial Final Acceptance and Handover Request
PMF-008-SCO-030 Partial Final Acceptance and Handover Certificate
PMF-008-SCO-031 Warning Letter due to Incomplete IA&HO Snag List Rectification
PMF-008-SCO-032 Warning Letter due to Incomplete FA&HO Snag List Rectification
PMF-008-SCO-034 Work Inventory Report Due to Inability for IA&HO Inspection
PMF-008-SCO-035 Work Inventory Letter to Contractor Due to Inability for IA&HO Inspection
PMF-008-SCO-036 Standard Drawing Frame
PMF-008-SCO-037 Requirements Traceability Matrix RTM
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Document No. Title
PMF-008-SCO-038 Design Review Guidelines
PMF-008-SCO-039 Design Packages Elements
PMF-008-SCO-040 Design Package Review Release to Reviewers
PMF-008-SCO-041 Project Testing and Commissioning Guideline
PMF-008-SCO-042 Contractor Commissioning Request
PMF-008-SCO-043 Unit Test Report
PMF-008-SCO-044 Commissioning Report
PMF-008-SCO-045 Concept Master Plan and Development Framework
PMF-008-SCO-046 Warning Letter due to Not Request for FA&HO
PMF-008-SCO-047 Design Submittals in EPC Projects after Award and before 90% Design
Package
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Section 9 - Project Value Engineering
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History Page

12/01
● The Value Engineering guidelines from 9.1 to 9.6 are revised.
● The second bullet of the criteria of selecting a project for Value Engineering is
revised.
Change
● The process “PMM-009-VEN-010 Plan and Prepare for Value Engineering Study”
Description
is revised.
● The process “PMM-009-VEN-020 Conduct Value Engineering Study” is revised.
● The process “PMM-009-VEN-040 Monitor and Control Value Improvement” is
revised.
06/02
2020
Abdullah M. Albani
This section is developed as an incorporation of updated “Project Value Engineering

Manual” which developed by PARSONS as a standalone document. The following are
the changes:
● Elaborated the Value Engineering definition.
Change
Description ● Elaborated Value Engineering Application Opportunities.
● Added Value Engineering Study Process Map.
● Added High-Level Process Map for Project Value Engineering.
● Added “Organize Logistics for Value Engineering Study” procedure.
01 Walid Eldakhs
Version 27/10 Fakhruddin Bilal

of the Abd-Allah M. Albani Sultan F. Alotaibi Khamees S. Alzahrani Falah Almutairi Mansour M. Abuthnain
stand 2019
alone Bakir Aneizan
document Mohammad Adli
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Change
● First version developed by PARSONS as a standalone document.
Description
00_PT03_MN_002.02 355 of 751 05/01/2022

9 Project Value Engineering

The subject of this particular section of the Project Management Manual (PMM) is Project Value
Engineering.
9.1 What is Value?
Value is a fair return or equivalent in goods, services, or money for something exchanged. Value is
in direct proportion to performance or function and in inverse proportion to resources that required
for performance/function. It is represented as follows:
𝑷𝒆𝒓𝒇𝒐𝒓𝒎𝒂𝒏𝒄𝒆 (𝑭𝒖𝒏𝒄𝒕𝒊𝒐𝒏)
𝑽𝒂𝒍𝒖𝒆 ~
𝑹𝒆𝒔𝒐𝒖𝒓𝒄𝒆𝒔
Function here is defined, as an action (or intended purpose), that must be performed by a project,
product, process or service to meet customer or business need.
Function is measured by the criteria defines reliable levels of performance based on customer or
business requirements.
Resources are measured by total cost, risks, materials, labor, time, energy to reliably accomplish
the function.
9.2 What is Value Engineering?
Value Engineering (VE) is a systematic, structured method of investigation, using trained, multi-
disciplined teams to analyze the functional requirements of a project or a program for achieving the
essential functions at the lowest total cost (capital, operating and maintenance) over the project
and product life time.
Key values of Value Engineering are saving, innovation, balance, ingenuity and team work. This
approach results in:
● Performance optimization: through improving quality and functional performance without
additional cost.
● Cost optimization: through the review and analysis of project or program components and
the best alternatives available to achieve its objectives at the lowest total cost. By eliminating
components that are unnecessary or non-value adding in improving or achieving the
objectives of the project or the program.
NWC shall apply Value Engineering to the following:
● A project with value equals or greater than SAR 20 million.
● A project that produces a standard design to be constructed repeatedly with value equals or
greater than SAR 5 million.
● A Design-And-Build Project (The Value Engineering study shall be conducted through
conceptual design before tender at initial planning stage).
The Value Engineering studies shall be led by:
● HQ Value Engineering team:
○ All treatment plants
○ All transmission lines above 30M SAR
● Cluster Value Engineering Team:
○ All transmission lines below 30M SAR
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○ All other projects.

In order to ensure best value for money option, a value study should be considered in the early
phases of a project or a program development.
9.3 This Section is a Guide to:
● Raise awareness and knowledge about Value Engineering and factors that affect them.
● Introduce standard methods to perform Value Engineering studies in a workshop format for
a project or a program.
It includes processes and procedures for undertaking and conducting a Value Engineering Study.
The content of this manual is applicable to any project or program or to a specific work package.
9.4 Value Engineering Application Opportunities
Value Engineering shall be applied to improve performance and reduce, where appropriate,
resource requirements. That improvement can be measured in terms of money and/or other factors
such as productivity, quality, time, energy, environmental impact, and durability.
For best achievement of these benefits, the most effective application of Value Engineering is at
the early stages of planning and design development of a project or program. At this stage, changes
or redirection in the design is accomplished without extensive resource commitment, thereby saving
time and effort.
Value Engineering study can be performed once or more during project life. The mandatory Value
Engineering studies for projects that selected for value engineering as per selection criteria are at
30% design package review.
However, more Value Engineering studies, if required and agreed, can be performed at later stages
of design development or completion and shall include constructability reviews, material selection
etc.
Figure 9-1 Value Engineering Effect on Cost vs Time and Saving vs Time
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Furthermore, during construction, a Contractor may submit Value Engineering (Variation Proposals)
alternatives to reduce cost, schedule, or present alternative methods of construction, without
reducing performance or quality. In this case, the NWC project manager and the Supervision
Consultant shall evaluate the proposed alternatives and process it as a variation. If accepted, it
shall be processed through (PMM-007-INT-060 Variation Control) process.
9.5 Value Engineering Study Team
Value Engineering studies are typically performed by specialized experienced multi-disciplinary
team and lead by a Certified Value Specialist (CVS®) or by a Value Engineering expert that certified
in Value Engineering facilitation and participated in VE sessions. The size and composition of the
team is project or program dependent. The members should represent a diverse background that
incorporates relevant knowledge, expertise and experience required to cover the issues and
objectives of the project or program. Typically, these include technical design, operation and
maintenance, cost estimation, procurement, material, construction, and quality.
9.6 Value Engineering Study Process
A Value Engineering Study uses a systematic methodology, known as Value Methodology. The
methodology outlines specific steps to effectively analyze the functions of a project or a program in
order to generate value alternatives to achieve or exceed the project or program’s functional or
performance requirements without additional cost.
Internationally recognized Value Methodology follows eight phases Job Plan, prescribed by SAVE
International (Appendix C of The Value Methodology Standard Reference). These phases are:
1. Preparation Phase – A pre-study meeting is held to identify the VM study subject, goals
and objectives, participants, schedule, information, and logistics.
2. Information Phase – The VM study team reviews the study subject’s scope, schedule,
cost, performance, quality, and risk. Various modeling techniques are applied to develop
an understanding of this information.
3. Function Analysis Phase – The VM study team defines the project functions using a two-
word abridgement. The VM study team reviews and analyzes these functions, using
recognized techniques such as random function identification, FAST diagrams, function
resource allocation, and function performance specification to define functions, allocate
performance and resources, and select functions for value improvement.
4. Creativity Phase – The VM study team employs creativity techniques to generate ideas to
perform the subject’s function(s).
5. Evaluation Phase – The VM study team follows a structured evaluation process to select
those ideas that offer the greatest potential for value improvement while delivering the
project’s function(s) considering performance, quality, schedule, cost, and risk.
6. Development Phase – The VM study team develops the selected ideas into VM proposals
with enough documentation to allow decision makers to determine if they should be
implemented.
7. Presentation Phase – The VM facilitator develops a report and/or presentation that
documents and conveys the conclusions and results of the VM study.
8. Implementation Phase – The sponsoring organization reviews the results of the VM study
and decides which VM proposals to implement. An implementation plan is developed and
executed in order to actualize the value improvements.
Steps 2 to 7 are known as six-step value engineering job plan.
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Figure 9-2 Value Engineering Study Process
9.6.1 Plan and Prepare for Value Engineering Study: Pre-Study Activities
9.6.1.1 Selection Criteria for a Value Engineering Study
Typically, one or more of the following criteria can be used to select a project for a Value
Engineering Study:
● Unclear scope and deliverables
● Technically complex design
● Environmental risks
● Engineering risks
● Construction risks
● Estimated cost high
● Multiple integration points
● Budgetary and schedule constraints
● Geotechnical risks
● Use of new technology or new construction methods
● Political risks (multiple stakeholders with high expectations)
● Demonstrate “Value for Money” decision
NWC has selected the criteria described in “9.2 What is Value Engineering?”
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9.6.1.2 Collect and Compile Information

The NWC Value Engineering team (including clusters) shall collect the following
information about the project or the program to be shared with the workshop participants
in a documented format:
● Objectives and service requirements
● Historical data and statistical information
● Site information including geotechnical report
● Strategic planning documents
● Assumptions, risk information, constraints
● Design standards and specifications
● Available cost estimates
● Specific regulatory requirements
● Terms and specifications of the National Water Company and the Ministry
● Previous lessons learned from similar projects
● Identify relevant disciplines and key stakeholders
9.6.1.3 Develop Value Engineering Study Scope
A Value Engineering Study Scope Statement must be developed. This statement defines
the limits, and exclusions of the study.
9.6.1.4 Organize Logistics for Value Engineering Study
● An offsite comfortable indoor environment (preferably a hotel location)
● Large meeting room, capable of accommodating 20-25 people
● Meeting room tables (rectangular) should be arranged in a large U shape pattern
for face to face communication
● Flip charts with markers
● Projector with 8’-0” screen for display of presentations, maps and images
● Power bars (4-5) to connect personal computers/ laptops
● Internet wi-fi access for research during Development Phase
● Availability of light breakfast and lunch
● Access to FTP (File Transfer Protocol) site to share large files (drawings, reports)
with participants and Value Engineering team members
9.6.1.5 Finalize Team Composition
The Value Engineering study lead confirms the agenda and workshop schedule and the
need for any support personnel or additional team members. The Value Engineering
workshops shall be conducted with the attendance of HQ Value Engineering section
representatives. The study team composition is reviewed to assure all necessary
disciplines are correctly represented.
In the event the use of a third party Value Engineering Consultant is required, the
Consultant must have a CVS® designation to conduct and coordinate the Value
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Engineering Study. This is especially important for strategic and critical projects or
programs and to manage HQ Value Engineering study schedule and workload.
9.6.1.6 Determine Performance Criteria
The following criteria can be used to evaluate value alternatives and their relative
importance.
The performance criteria may be adjusted for a specific study:
● Achieves Strategic Objectives (e.g. Vision 2030)
● Performance Reliability
● Ease of Operation and Maintenance
● Financial Viability (both capital and life cycle)
● Constructability
● Flexibility or Future Adaptability
● Environmental Impact
● Sustainability
9.6.2 Conduct Value Engineering Study
9.6.2.1 Value Engineering Study Workshop
9.6.2.1.1 The workshop shall be conducted with the attendance of:
● Project or Program Manager
● Value Engineering division representatives
● Relevant technical disciplinary experts
● Cost analyst
● Technical Services Dept. reps.
● Relevant Cluster reps
● Operation Excellence reps.
● Asset Management Reps.
● Technical Services Dept. reps.
● Design Consultant
● Important Stakeholders
9.6.2.1.2 The Value Engineering Study workshop shall include the following
phased activities:
1. Information Phase:
In this phase, the Engineering and the Value Engineering team
spend time on the following:
● Program/Project overview
● Business objectives or desired outcome
● Review of gathered data and relevant details
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● Site visit, if possible. Alternately, Google map satellite

images, photos, topographical map of the site and its
surroundings would help
● Ask any clarifying questions
● Challenge assumptions
● Review of initial designs, scope of work, preliminary bill of
quantities and Pareto distribution of costs
2. Function Analysis Phase
During this phase, the team shall target functions with the highest
potential for value improvement. The Value Engineering team
performs the following steps during the workshop:
● Identify, understand and validate essential functions (what it
must do) of the product, project or program, or process.
● Classify the functions as basic, higher order, required
secondary or secondary.
● Assign cost and other measurement criteria to functions.
● Relate functions to customer or business requirements.
● Assess functions for performance.
● Select functions in order to establish the best opportunities
for improvement.
● Techniques utilized, Tabular Function Analysis or Function
Tree or FAST (Function Analysis Systems Technique)
diagram.
3. Creative Phase
During this phase, the Value Engineering team shall brainstorm for
large quantities of innovative ideas for performing each function
selected as Value Target Functions. No judgment or discussion
occurs during this activity. The higher the quantity of ideas the better
for the project or program.
4. Evaluation Phase
The objective of this phase is to shortlist ideas and concepts
generated in the Creative Phase into specific value improvement
business cases. Using the performance criteria established during
the pre-study effort or at the workshop, ideas are sorted and rated as
to how well they meet those criteria. Group similar ideas by category.
Ideas are evaluated using points 1 (weak) to 10 (excellent) - the
best alternatives are the ones that get the most points. Typically,
ideas scored 8 and above are developed.
5. Development Phase
At this phase, the primary activity is to develop business cases for
the selected shortlisted ideas. Typically, it is completed individually
or in small teams.
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● Each idea is assigned to a Value Engineering team member

for further analysis and elaboration
● List the advantages and disadvantages of each idea against
the base case scenario
● Provide sound rationale for the implementation of a specific
idea
● Develop cost calculations (with support from the cost
analyst).
● Conduct technical performance benefit analysis.
● Include sketches of original design and proposed
alternative(s).
● Provide technical references.
● Assess schedule impact.
● Identify implementation feasibility for each alternative.
● Complete a peer review of the developed ideas for additional
critical perspectives
6. Presentation Phase
At this phase, developed ideas are presented to authority and key
stakeholders. The business cases are further analyzed as possible
package of options or scenarios. It is then presented to Management
as recommended options with capital and life cycle cost impacts.
9.6.2.2 Prepare and Submit the Value Engineering Study Recommendation Report
The Value Engineering Study lead shall issue Value Engineering workshop report
identifying selected ideas and action plan within 2-3 weeks upon completion of the
workshop.
The objective of this activity is to prepare the best alternative(s) based on the selected
ideas in the workshop. The report shall be reviewed by the project team as per workshop
action plan.
The following steps shall be included:
● Beginning with the highest ranked value alternatives, including estimated initial
costs, life cycle cost.
● Select best alternative(s) for implementation.
● Complete recommendations.
● Finalize the Value Engineering study recommendation report.
● Submit the report for approval.
● Obtain management approval to proceed with implementation of the
recommendations - for integration into the project.
9.6.3 Monitor and Control Value Engineering Implementation
The objective of post-study activities is to assure the implementation of the approved value
study recommendations. This is performed during the design review.
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Prepare an implementation plan, including a proposed schedule of all implementation activities,

team assignments, and management requirements.
In all cases, the NWC Project Manager and Design Consultant are responsible for the
integration and implementation. Each value alternative, independently or in conjunction with
other ideas must be evaluated, analyzed, designed and confirmed for integration into the final
design.
The Cluster Value Engineering Specialist shall document and submit value alternatives that
are being implemented, actual results/ cost saving and lessons learned to the HQ Value
Engineering Director to be added to the Value Engineering data base for consideration in future
project or programs.
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The high-level process map for Project Value Engineering is illustrated below in Figure 9-5:
Figure 9-3 High-Level Process Map for Project Value Engineering
9.7 PMM-009-VEN-010 Plan and Prepare for Value Engineering Study

9.7.1 Flowchart
Figure 9-4 PMM-009-VEN-010 Plan and Prepare for Value Engineering Study Flowchart
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9.7.2 Procedures
9.7.2.1 PMM-009-VEN-010-010 Schedule Value Engineering Study
Procedure: ● The Value Engineering Director shall, in coordination with the Cluster
Value Engineering Specialist, schedule the Value Engineering
study/workshop after receiving Value Engineering Study Request (PMF-
009-VEN-007 Value Engineering Study Request Form) from the NWC
Project Manager.
● The Value Engineering Director shall use the (PMF-009-VEN-008 Value
Engineering Team Roadmap) as a guide in schedule preparation.
● Value Engineering is focused on the early stages of design (30% design
reviews).
● Any Value Engineering required in next stages will be Conditional.
Roles: Responsible: Value Engineering Director

Consulted:
NWC Project Manager
Informed: Design Consultant
9.7.2.2 PMM-009-VEN-010-020 Define the Scope of Value Engineering Study
Procedure: ● Develop the Scope Statement of Value Engineering Study.

● Define the limits of the study.
● The scope statement defines what is not included in the study.
Roles: Responsible:
Accountable: Value Engineering Director
Design Consultant
Consulted:
NWC Project Manager
Supply Chain GM
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9.7.2.3 PMM-009-VEN-010-030 Collect and Compile Required Information
Procedure: ● Information sources are mainly:

○ People sources which include operation, Designer, cost or
estimating group, maintenance, Contractors, and Consultants,
suppliers.
○ Documentation sources which include drawings, project
specifications, bid documents and project plans, design standards,
regulations, Value Engineering Data base.
● Collect information relevant to the project:
○ Objectives and service requirements
○ Historical data and statistical information
○ Site information including geotechnical report
○ Strategic planning documents
○ Assumptions, risk information, constraints
○ Design standards and specifications
○ Available cost estimates
○ Specific regulatory requirements
○ Previous lessons learned from similar projects.
○ Current or future projects related to the project under study.
○ Proposed sites for project implementation.
○ General layouts and strategic plans for water and wastewater
services and supply and demand plans.
○ Conditions and specifications for relevant authorities such as
municipalities.
○ Laws and regulations of the relevant authorities.
○ Terms and specifications of the National Water Company and the
Ministry.
● Develop Workshop Agenda using (PMF-009-VEN-014 Value
Engineering Study Agenda).
● Identify the Workshop attendees using (PMF-009-VEN-015 Value
Engineering Study Attendees).
Roles: Responsible: Cluster Value Engineering Specialist

Consulted:
NWC Project Manager
Design Consultant
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9.7.2.4 PMM-009-VEN-010-040 Organize Logistics for Value Engineering Study
Procedure: ● Secure a workshop venue offsite with the following:

○ Large meeting room, capable of accommodating 20-25 people
○ Meeting room tables (rectangular) should be arranged in a large U
shape pattern for face to face communication
○ Flip charts with markers
○ Projector with 8’-0” screen for display of presentations, maps and
images
○ Power bars (4-5) to connect personal computers/ laptops
○ Internet (wi-fi) access for Development Phase
○ Availability of light breakfast and lunch
○ Access to FTP (File Transfer Protocol) site to share large files
(drawings, reports) with participants and Value Engineering team.
Roles: Responsible: Cluster Value Engineering Specialist

NWC Project Manager
Consulted:
Director
Design Consultant
Informed:
Value Engineering Team
9.7.2.5 PMM-009-VEN-010-050 Conduct Site Visit
Procedure: ● Conduct site visit.

● If the actual site is not available, facilities with comparable functions and
activities may prove to be a valuable source of usable information. In
addition, Google Map satellite images, Photos, topographical map of the
site and its surroundings would help.
Roles: Responsible:
Design Consultant
NWC Project Manager
Consulted:
Director
Informed: Value Engineering Team
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9.7.2.6 PMM-009-VEN-010-060 Determine Performance Criteria
Procedure: ● Determine the criteria for evaluation of Value Alternatives

● The following criteria can be used to evaluate value alternatives and their
relative importance. The performance criteria may be adjusted for a
specific study:
○ Achieves Strategic Objectives (e.g. Vision 2030)
○ Performance Reliability
○ Ease of Operation and Maintenance
○ Financial Viability (both capital and life cycle)
○ Constructability
○ Flexibility or Future Adaptability
○ Environmental Impact
○ Sustainability.

Consulted:
Design Consultant
NWC Project Manager
Director
9.8 PMM-009-VEN-020 Conduct Value Engineering Study

In case of any conflicts between approval authorities stated in this manual and the latest approved
NWC Delegation of Authority, the latest approved NWC Delegation of Authority shall be followed.
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9.8.1 Flowchart
Figure 9-5 PMM-009-VEN-020 Conduct Value Engineering Study Flowchart
9.8.2 Procedures
9.8.2.1 PMM-009-VEN-020-010 Distribute Design Review Package to Value
Engineering Team Members
Procedure: ● Receive the 30% design package.

● Distribute the received Design Review Package to the Value Engineering
team members.
Roles: Responsible: Cluster Document Control Section Head

Consulted:
Informed:
9.8.2.2 PMM-009-VEN-020-020 Conduct Value Engineering Workshop
Procedure: ● For Transmission Line Projects above 30M SAR and Treatment Plant
Projects, the value engineering workshop shall be led by HQ. Other
projects shall be led by Cluster.
● The following forms/guidelines shall be used during the workshop:
○ (PMF-009-VEN-001 Alternative Template Example)
○ (PMF-009-VEN-003 Functions List Example)
○ (PMF-009-VEN-004 Risks Elements Checklist)
○ (PMF-009-VEN-005 Value Engineering Agenda Sample)
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● This approach shall follow the internationally recognized six step Job
Plan of Value Methodology as prescribed by SAVE International and
accredited by Value Analysis Canada:
1. Information Phase (~ 4-6 hours)
2. Function Analysis Phase includes Value Target Functions (~ 2-4
hours)
3. Creative Phase (4 hours)
4. Evaluation Phase (4 hours)
5. Development Phase (16 hours)
6. Presentation Phase (2-4 hours)
● Invite the following list to participate in the workshop:
○ HQ:
- Value Engineering Dept. Reps.
- Technical Services Dept. Reps.
○ Cluster:
- Value Engineering Dept. Reps.
- Operation Excellence Reps.
- Asset Management Reps.
- Technical Services Dept. Reps.
- Projects Scheduling & Control Dept. Reps.
- Environmental Compliance Dept. Reps.
- PMO Dept. Reps.
- NWC Project Manager
- Design Consultant
- Contractor (for Design & Build projects)
● Conduct the workshop following the Job Plan.
● During workshop, use:
○ (PMF-009-VEN-018 Value Engineering Study Functions List)
○ (PMF-009-VEN-016 Value Engineering Study Creativity List)
○ (PMF-009-VEN-017 Value Engineering Study Evaluation List)
○ (PMF-009-VEN-012 Value Engineering Development Sheet)
Value Engineering Team Lead
Roles: Responsible:
Cluster Projects GM
Consulted:
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NWC Project Manager

Informed:
9.8.2.3 PMM-009-VEN-020-030 Prepare and Submit the Value Engineering Study
Recommendation Report
Procedure: ● Prepare and Submit the Value Engineering Study Recommendation

Report.
● The Value Engineering study report shall be in the following format:
○ Executive Brief
- General Description of Value Engineering Study
- Value Engineering Study Process
- Overview of Project
· Project Context and Background
· Base case Scenario including Cost Estimate
- Value Target Functions
- Performance Criteria Applied
- Summary of Value Engineering Results
- Accepted Alternatives
○ Summary of Value Engineering Alternatives
○ Description of Value Alternatives by Functions
- Full List of Developed Value Alternatives
○ Appendices shall include:
- Function Analysis or FAST Diagram
- Pareto Distribution of Costs
- List of Creative Ideas. with Score and Action
- Value Engineering Agenda
- List of core Value Engineering team
- Slide deck from Information Phase (if available)
- Photos of the session (if available)
● Initiate the (PMF-009-VEN-013 Value Engineering Implementation
Sheet) and attach it to the report.
Roles: Responsible: Value Engineering Team Lead
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Consulted:
Design Consultant
NWC Project Manager
Informed:
9.8.2.4 PMM-009-VEN-020-040 Approve the Value Engineering Study
Recommendation Report
Procedure: ● The Cluster Value Engineering Specialist shall review and give first
approval on the Value Engineering Study Recommendation Report.
● The Value Engineering Director shall review and give second approval
on the Value Engineering Study Recommendation Report.
● The Technical Services GM shall give final approval on the Value
Engineering Study Recommendations.
Roles: Responsible:
NWC Project Manager
Consulted:
Design Consultant
NWC Project Manager
Informed:
Design Consultant
9.8.2.5 PMM-009-VEN-020-050 Issue Approved Value Engineering Study
Recommendations with the Design Review Comments
Procedure: ● Add the Value Engineering study approved recommendations to the

design review comments to be issued along with the design review report
to the Design Consultant for implementation.
● Update the (PMF-015-RIS-001 Project Risk Register) adding the
approved Value Engineering study recommendation(s).
Consulted: Cluster Value Engineering Specialist

Design Consultant
Informed:
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9.9 PMM-009-VEN-030 Implement Value Engineering Study Approved

Recommendations
9.9.1 Flowchart
Figure 9-6 PMM-009-VEN-030 Implement Value Engineering Study Approved Recommendation
Flowchart
9.9.2 Procedures
9.9.2.1 PMM-009-VEN-030-010 Incorporate the Value Engineering Study Approved
Recommendations into the Design
Procedure: ● Receives the approved Value Engineering study recommendation with

the comments of 30% design review package response.
● Incorporate the comments and Value Engineering recommendations into
the design.
● Prepare a report to describe in detail how the Value Engineering
recommendations have been implemented into the design.
● Submit the Value Engineering implementation report with the next design
review package.

Consulted:
Informed:
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9.10 PMM-009-VEN-040 Monitor and Control Value Improvement

9.10.1 Flowchart
Figure 9-7 PMM-009-VEN-040 Monitor and Control Value Improvement Flowchart
9.10.2 Procedures
9.10.2.1 PMM-009-VEN-040-010 Review Implementation of the Value Engineering
Study Recommendations through the next Design Review
Procedure: ● Receive the Value Engineering implementation report submitted with the
next design review package.
● Review drawings and specifications to ensure implementation of the
Value Engineering Study recommendations.
● If the implementation is not satisfactory, report that in the design review
package response.

Consulted:
Design Consultant
Informed: Technical Services GM
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9.10.2.2 PMM-009-VEN-040-020 Review Any Submitted Value Engineering Study by

Contractor / Supervision Consultant
Procedure: ● Receive and review any submitted value studies by Contractor or

Supervision Consultant during the construction phase.
● Ask the initiator (Contractor or Supervision Consultant) to do
presentation, conduct workshop, or submit additional information as
necessary.
● Approve or reject the submitted Value Engineering study.
● In case of approval, proceed through (PMM-007-INT-060 Variation
Control) process.
Supervision Consultant (if Value Engineering study
Roles: Responsible:
submitted by Contractor)
Cluster Value Engineering Specialist (if Value Engineering
study submitted by Supervision Consultant)
Cluster Value Engineering Specialist (if Value Engineering
Consulted:
study submitted by Contractor)
Design Consultant
Contractor
Supervision Consultant (if Value Engineering study
submitted by Supervision Consultant)
Informed:
9.10.2.3 PMM-009-VEN-040-030 Monitor and Calculate Actual Value Improvement
Results / Cost Savings
Procedure: ● Monitor and calculate actual value improvement results and cost
savings.
Roles: Responsible:
Consulted:
Contractor
Informed:
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9.10.2.4 PMM-009-VEN-040-040 Update and Publish the Value Engineering Database
Procedure: ● Update the Value Engineering database with the implemented Value
Engineering ideas and its actual results/lessons learned.
● Publish the updated Value Engineering database to clusters and
Technical Services GM to be considered for current and future projects.
● Forward applicable lessons learned to the Continuous Improvement
Lead.

Cluster Value Engineering Specialists
Informed:
Cluster Technical Services Directors
Cluster Projects Managers
Typically, for a Value Engineering program in any organization the following KPIs are used to
measure the effectiveness of Value Engineering studies:
● Total number of Value Engineering studies/year
● Total value of projects/programs studied
● Avg. % of cost avoidance identified
● Avg. number of Value Alternatives generated in each study
● Avg. % of shortlisted Value Alternatives
● Avg. % of accepted Value Alternatives of implementation
● Avg. cost of a Value Engineering study
● Avg. Return on Investment (ROI) of a Value Engineering study
However, the KPI in below table measures the commitment of applying Value Engineering Studies.
The NWC Project Manager is responsible to measure and report these KPIs at each KPI stated
frequency. The current status of each KPI is to be reflected in the monthly project progress report.
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Table 9-1 Project Value Engineering KPIs

Detail Measurement
Number/year of projects
fulfill the criteria of
Value Engineering selecting a project for
1 before award for Value Engineering and Monthly 0 projects NA >0
construction awarded to contactors
without Value
Engineering.
missing or overdue
Timely Value Value Engineering
2 Engineering workshop reports in the Monthly 1 2 >2
workshop reports cluster against the
agreed schedule of
workshops
9.12 Attachments
VEN Project Value Engineering).
Table 9-2 Project Value Engineering forms, templates and guidelines
Document No. Title
PMF-009-VEN-002 Cluster Value Engineering Section Head Responsibilities
PMF-009-VEN-003 Functions List Example
PMF-009-VEN-005 Value Engineering Workshop Agenda Example
PMF-009-VEN-007 Value Engineering Study Request
PMF-009-VEN-008 Value Engineering Team Roadmap
PMF-009-VEN-009 Value Engineering Study Report
PMF-009-VEN-011 Value Engineering Report Approval Form
PMF-009-VEN-012 Value Engineering Development Sheet
PMF-009-VEN-013 Value Engineering Implementation Sheet
PMF-009-VEN-014 Value Engineering Study Agenda
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Document No. Title
PMF-009-VEN-015 Value Engineering Study Attendees
PMF-009-VEN-016 Value Engineering Study Creativity List
PMF-009-VEN-017 Value Engineering Study Evaluation List
PMF-009-VEN-018 Value Engineering Study Functions List
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Section 10 - Project Schedule Management
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History Page

12/01
● The table “Schedule Levels Layout Over a Project Life Cycle” is elaborated.
● The process “PMM-010-SCH-010 Plan Project Schedule Management” is
elaborated.
● The process “PMM-010-SCH-015 Schedule Management for Initial Planning” is
added.
Change
Description ● The process “PMM-010-SCH-020 Schedule Management for Procurement” is
revised.
● The process “PMM-010-SCH-030 Schedule Management for Design” is revised.
● The process “PMM-010-SCH-040 Schedule Management for Construction, Testing
& Commissioning and Handover” is revised.
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06/02
This section is developed as an update to “Schedule” section in first version the Project
the changes:
● Creating Guideline table for schedule levels.
● Adding process for plan schedule management.
● Adding guidelines for the following:
○ Developing level 1 schedule
○ Developing Level 2 schedule
○ Schedule updating
○ Developing and reviewing level 3 schedule
○ Activity weighting
○ Progress curves
● Adding requirements from Contractors and Design Consultants to include level
2 schedule in their tender proposal.
Change
Description ● Updating KPI’s and adding KPI for time overrun.
● Change the section name from time to schedule.
● Adding procedures to include the updated level schedule in tender documents
for design and construction.
● Adding procedures to review and approve level 3 schedule submitted by
Contractor and Design Consultant.
● Adding procedure for reviewing and approving recovery schedule.
● Adding checklist for reviewing level 3 schedule.
● Adding procedure and guidelines for look ahead schedule.
● Adding procedure and guidelines for reviewing revised schedule submitted in
case of EOT claim.
● Merging the two processes of “time management for construction” and “time
management for handover” into one process.
● Updating flowcharts.
● Updating responsibilities as per NWC organization charts.
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10 Project Schedule Management

The subject of this particular section of the Project Management Manual (PMM) is Project Schedule
Management.
The high-level process map for Project Schedule Management is illustrated below in Figure 10-1:
Figure 10-1 High-Level Process Map for Project Schedule Management
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00_PT03_MN_002.02
Table 10-1 Schedule Levels Layout Over Project Life Cycle

NWC Five-Year Project Life Cycle
Project Portfolio Tender for Tender for Testing & Handover &
Registration Initial Planning Design Construction
Planning Design Construction Commissioning Closeout
Level 1 Schedule for the project.
Covers all stages in project life cycle.
Level 1
Created by NWC and National Master Plan Consultant.
Schedule
Created during Five-Year Planning and elaborated in next stages.
Created in milestone level to be used: 1. as a basis for next levels. 2. for reporting to high management
Level 2 Schedule for Level 2 Schedule for Construction.
Design. Covers Construction, Testing & Commissioning and
Covers Design Stage. Handover & Closeout stages.
Created by Design Created by Contractor.
Level 2
Consultant. Created During Tender for Construction Stage.
Schedule
Created During Tender Created to be a part of the technical proposal.
for Design Stage.
Created to be a part of the
technical proposal.
Level 3 Schedule for Level 3 Schedule for Construction.
Design. Covers Construction, Testing & Commissioning and
Covers Design Stage. Handover & Closeout stages.
Created by Design Created by Contractor.
Level 3
Consultant. Created at the beginning of Construction Stage.
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Schedule
Created at the beginning Created to be used for project control.
of Design Stage.
Created to be used for
project control.
Level 4 Schedule for Construction (if required).
Covers in greater detail, certain area of concern in
Construction, Testing & Commissioning and
Handover & Closeout.
Created by Contractor.
Level 4
Created During Construction and Testing &
Schedule
Commissioning Stages.
Created to address specific situations that demand
a greater level of detailing than that available on
Level 3 schedule such as mobilization, 3 months
look ahead or a case with an external party.
Level 5 Schedule for Construction.
Covers Construction, Testing & Commissioning and
Handover & Closeout.
Created by Contractor.
Created During Construction and Testing &
Level 5 Commissioning Stages.
Schedule Created to quantify the works in tables at maximum
practical details on hourly, daily or weekly basis
12/01/2022
such as procured material, design deliverables, a
specific work deliverable, etc. to be used by site
execution persons. Dates/times are mentioned in
the table headers instead of time scale.
10.1 PMM-010-SCH-010 Plan Project Schedule Management

10.1.1 Objective
The objective of this process is to develop the Schedule Management Plan Section of the
Project Management Plan and ensure that all schedules are timely and properly developed.
This process also covers planning for monitoring schedule update throughout the project life
cycle.
10.1.2 Policies
1. Each project must have a separate section for schedule management in the Project
Management Plan, created by the NWC Project Manager and the Cluster Scheduling
Section Head and used as the guiding document for internal and external staff
2. Second Parties must create their own management plans (design and/or
construction) including Schedule Management Plan Section for the project as part of
their contract mobilization work. These management plans must comply with the
schedule management requirements defined in the NWC Project Management Plan
and must be approved by NWC during mobilization period.
3. The Schedule Management Plans in PMPs of NWC, Design and Construction must
4. Second parties must provide the design / construction detailed schedule level 3 within
15 days from project site handover date for NWC review and approval.
5. The Schedule management plan must cover the Schedule Levels as planned in table
10-1 from strategic period to project closeout based on the stage deliverables,
required accuracy and any applicable other factors. The table 10-1 introduces the
schedule levels layout over the project life cycle.
6. Levels are described in the attachment “EPM-KPP-PR-000002 Project Schedule
Development Procedure”.
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10.1.3 Flowchart
Figure 10-2 PMM-010-SCH-010 Plan Project Schedule Management Flowchart
10.1.4 Procedures
10.1.4.1 PMM-010-SCH-010-015 Develop the Schedule Management Plan Section of

includes a dedicated section for Schedule management.
● Update the Project Schedule Section throughout the lifecycle with the
Roles: Responsible:
NWC Project Manager
Cluster Projects GM
Consulted:
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Informed:
Cluster Projects GM
10.1.4.2 PMM-010-SCH-010-020 Approve the Schedule Management Plan Section of
Procedure: ● Review and Approve the Schedule Management Plan Section of Project
Management Plan.
satisfactorily.
● Approve the submitted Project Schedule Management Plan Section.
Roles: Responsible: Cluster Scheduling & Control Manager

Consulted:
NWC Project Manager
Cluster Projects GM
Informed:
NWC Project Manager
Cluster Projects GM
10.1.4.3 PMM-010-SCH-010-030 Ensure Schedule Requirements and Technical

includes a dedicated section for Schedule management.
own Schedule Management Plan and must submit it during the
Management Plan.
proposals includes Schedule assessment criteria, which addresses:

Consulted:
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10.1.4.4 PMM-010-SCH-010-040 Develop Project Schedule Management Plan Section

Procedure: ● Develop Project Schedule Management Plan Section in the Project

● Ensure that the Project Schedule Management Plan Section in the
Schedule Management Plan Section in the NWC Project Management
Plan.
Director about the development of the Project Schedule Management
Plan Section.
● Include the Project Schedule Management Plan Section in the Project
Management Plan.

NWC Project Manager
Consulted:
10.1.4.5 PMM-010-SCH-010-050 Ensure Schedule Requirements and Technical

Schedule Management Plan and must submit it during the contractual
proposals includes Schedule assessment criteria, which addresses:

Consulted:
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10.1.4.6 PMM-010-SCH-010-060 Develop the Construction Schedule Management

Plan Section
Procedure: ● Develop Project Schedule Management Plan Section in the Project

● Ensure that the Project Schedule Management Plan Section in the
Schedule Management Plan Section in the NWC Project Management
Plan.
● The Design Schedule Management Plan shall strictly be in alignment
with (PMF-010-SCH-006 Scheduling Management Manual) which the
Contractor is responsible to fulfill during the Design Stage.
the development of the Project Schedule Management Plan Section.
● Include the Project Schedule Management Plan Section in the Project

NWC Project Manager
Consulted:
10.2 PMM-010-SCH-015 Schedule Management for Initial Planning

10.2.1 Objective
The objective of this process is to update the activities in level 1 schedule for initial planning to
be used in tender for design stage and tender for construction.
10.2.2 Policies
1. Level 1 Schedule of every project must be updated at initial planning.
2. The schedule shall be maintained in the “Primavera P6” as an integral part of the
project schedule.
3. Level 1 schedule must only be changed if there is an approved variation.
4. The Level 1 schedule must be updated weekly during the initial planning stage to
show actual progress of the procurement activities.
5. The NWC Project Manager, liaising with the Cluster Scheduling Section Head, must
weekly review the updated level 1 schedule to identify whether the activities are on-
schedule or not.
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10.2.3 Flowchart
Figure 10-3 PMM-010-SCH-015 Schedule Management for Initial Planning Flowchart
10.2.4 Procedures
10.2.4.1 PMM-010-SCH-015-010 Update Project Level 1 Schedule
Procedure: ● Use the “Primavera P6” to develop project level 1 schedule based on the
initial level 1 schedule developed by Strategic planning in NWC Five-
Year Projects Portfolio planning.
● Update the NWC Project Management Plan the project level 1 schedule.
● This schedule shall be revised and updated at the end of every stage
(before the stage gate review) by the new information in the completed
stage. It can also be updated when required by any new rising
information.

Consulted:
Informed:
Director
Guidelines: ● The level 1 is the highest level of project schedule and depicts the entire
scope of the project in a time-scaled graphic.
● The master plan and its initial level 1 schedule firstly set out expectations
of project timing and duration.
● Once a project is in execution, the project’s initial Level 1 schedule
durations shall be adjusted.
● The level 1 schedule has following key features:
○ Agreed/Contractual milestones
○ Critical path and analysis
○ Identification of key Risks
○ Schedule Contingency
○ Narrative
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● Level 1 schedule shall be included in the tender documents and contract

agreement documents. It shall be changed only through (PMM-007-INT-
060 Variation Control) process.
● Key aspects of a Level 1 Schedule:
○ Software: Primavera is to be used for level 1 schedule production.
○ Layout: Activities in waterfall format, starting from upper left, towards
lower right.
○ Legibility: Illegibly is a ground for immediate rejection.
○ Revisions: Good revision control is required. Approved Baseline
shall be Rev.0.
○ Total Scope: All major aspects of the scope need to be represented,
including key indirect such as mobilization or temporary structures.
○ Activity Durations: Baseline durations are initially based on historical
data and then updated using calculated from man-hours and unit
rates for given quantities and assumed resource availability or
based on contractual requirements. Forecast durations are most
likely durations based on current status, current and expected
resources, current performance and current execution strategy.
○ Milestones: All contract defined start, intermediate and finish
milestones are to be included in Level 1 schedule. The Level 1 is to
display both baseline and forecast dates.
○ Major enabling works: For example, access roads, excavation and
backfill activities, and critical underground activities.
○ Major Equipment Activities: For example, design, delivery and
installation of baggage handling equipment, HVAC, and electrical
substations.
○ Major Bulk Commodity Activities: For example, design, delivery and
installation of structural steel, and High Voltage Cable.
○ Major Interfaces: Major interfaces should be shown.
○ Pre-commissioning and commissioning activities: Pre-
commissioning and commissioning includes electrical
energizations, key system testing, and major component testing.
○ Abnormal Work periods: Identify Abnormal Work Periods with
“curtain” periods of impacted productivity, for example, peak
summer, National Holidays, Ramadan, etc.
10.3 PMM-010-SCH-020 Schedule Management for Procurement

10.3.1 Objective
The objective of this process is to develop a detailed activity schedule for initial planning stage,
tender for design stage and tender for construction to monitor and control these schedules
within the agreed duration of each stage.
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10.3.2 Policies
1. The detailed procurement schedule for the tendering activities must be developed
during the Tendering Stages, by the NWC Project Manager, Cluster Scheduling &
Control Manager and Cluster Technical Services Director in coordination with and
Supply Chain Team.
2. The procurement schedule shall be maintained in the “Primavera P6” as an integral
part of the project schedule.
3. The procurement schedule must be updated weekly during the tendering stages to
show actual progress of the procurement activities.
4. The NWC Project Manager, liaising with the Cluster Scheduling Section Head, must
weekly review the updated procurement schedule to identify whether the activities are
on-schedule or not.
10.3.3 Flowchart
Figure 10-4 PMM-010-SCH-020 Schedule Management for Procurement Flowchart
10.3.4 Procedures
10.3.4.1 PMM-010-SCH-020-010 Define the Procurement Activities
Procedure: ● Discuss the procurement activities with the Supply Chain Team.
● Identify the procurement activities clearly.
● Adjust the tendering stage duration appropriately, if needed.
● Send all assumptions and constraints for inclusion in the Project
Management Plan.

Consulted:
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Informed:
Supply Chain GM
10.3.4.2 PMM-010-SCH-020-020 Develop the Procurement Schedule
Procedure: ● Use the “Primavera P6” to show the intended relationships and
dependencies between procurement activities.
● Use the “Primavera P6” to show the duration of each procurement activity
and develop the procurement schedule.
● Develop procurement schedule in level 1. If the details and requirements
of procurement schedule cannot be reflected in level 1, develop the
procurement schedule in level 2.
Management Plan.
Consulted: Cluster Supply Chain Manager

Informed:
Supply Chain GM
Director
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10.3.4.3 PMM-010-SCH-020-030 Include Scheduling Requirements and Technical

Evaluation in the Design/Construction Tender Documents
Procedure: ● Include the requirements in the Design/Construction RFP:

○ “The Design Consultant / Contractor is required to create his own
Schedule Management Plan and must submit it during the
contractual mobilization period”.
○ “The Design Consultants / Contractors are required to create level 2
schedule and submit it as a component of the bid documents”.
● For contractual scheduling requirements and schedule reporting
requirements for design and construction contracts:
○ Develop the two requirements using (EPM-KPP-PR-000005 Project
Contractor Requirements for Planning & Scheduling Procedure) as
a guideline.
○ Ensure the inclusion of the two requirements in the RFP.
● During the technical evaluation of bids, review project level 2 schedule
submitted by bidders.
proposals includes schedule assessment criteria, which addresses:

Consulted:
Informed:
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Guidelines: LEVEL 2 SCHEDULE

● Level 2 schedule is more detailed schedule than level 1 schedule. It
expands on definition and visibility of key relationships.
● Level 2 schedule might become necessary to adequately summarize a
project timeline that:
○ contains stage scope or all project scope
○ reflects the delivering plan
○ complies with contractual commitments
○ depicts critical path
○ provides status.
● Level 2 schedule is to explicitly show all timings for all disciplines in all
areas and can serve as basis for initial resource loading exercises.
● Level 2 schedule serves as the basis for Level 3 schedule development.
● The planning & scheduling deliverable requirements (for design or
construction) covers project and activity durations, critical paths, risk
analysis, contingency, resource distribution and all other relevant
information.
● Level 2 schedule introduces work breakdowns within areas and
disciplines.
● Primavera is to be used to develop level 2 schedule and integrate the
resource loading capability.
10.3.4.4 PMM-010-SCH-020-040 Update the Procurement Schedule with Actual

Progress
Procedure: ● During the tender for design stage and the tender for construction stage,
make weekly updates to the procurement schedule in the “Primavera P6”
to reflect progress and delays of the procurement activities.
● Identify impacts and propose mitigations on the procurement schedule,
caused by events occurring in design.
● Adjust the stage duration appropriately, if needed.
Management Plan.

NWC Project Manager
Consulted:
Supply Chain GM
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Informed:
Supply Chain GM
Director
Guidelines: ● In order to update the procurement activities schedule there are several
steps that you should Check:
1. Update actual start and finish dates to see whether a task or
activity has started or finished later or earlier than planned, as well
as the impact that this shift may have on resources and the overall
project schedule. In case that a task is interrupted indicate when
work will continue on the remaining portion of the task.
2. Update the actual duration to indicate how long it actually took or
it will actually take to complete a task or activity.
3. Indicate which tasks have not started yet, which are in progress
and which are 100% complete.
4. For those tasks that are in progress, update the percentage of
completion to indicate how much progress, in terms of duration,
has been made up to status date. the percentage of completion,
the actual duration and the remaining duration are interdependent
quantities.
5. Update actual work (only if resources have been assigned to
tasks) to indicate how much work has actually been accomplished
on a task up to status date.
10.3.4.5 PMM-010-SCH-020-050 Check the Actual Procurement Progress Versus

Planned Progress
Procedure: ● Check objective evidence (checklist) for each weekly update of progress
and delays associated with the procurement activities.
● Meet with the Procurement Team in the event of any uncertainty or lack
of clarity.
● For behind schedule procurement activities, agree an appropriate course
of action with the Procurement Team to bring the procurement schedule
back on track (recovery).
● Make updates to the procurement schedule in the “Primavera P6” to
reflect agreed recovery actions.
● Adjust the stage duration appropriately, if needed.
Management Plan.
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Consulted:
Supply Chain GM
Project Performance Monitoring Director
Informed:
Supply Chain GM
Director
10.4 PMM-010-SCH-030 Schedule Management for Design

10.4.1 Objective
The objective of this process is to develop a detailed activity schedule for the Design Stage of
the project and subsequently to monitor and control this activity schedule within the agreed
duration of the stage.
10.4.2 Policies
1. The level 1 schedule for the design stage must be updated by the end the tender for
design stage by the NWC Project Manager liaising with the Cluster Technical Services
Director and Cluster Scheduling Section Head.
2. The updated level 1 design schedule must be maintained in the “Primavera P6” as an
integral part of the project schedule.
3. The design schedule must only be changed if there is an approved variation (i.e.
create a new baseline).
4. The Design Consultant shall submit a level 2 design schedule for project scope with
his bid proposal.
5. After contract award the Design Consultant shall submit level 3 design schedule for
NWC review and approval maximum after 15 days from project start.
6. The approved level 3 design schedule must be updated weekly during the Design
Stage to show actual progress of the design activities. NWC project manager must
take the according action such as urge letter.
7. NWC Project Manager, liaising with the Cluster Scheduling Section Head, shall
ensure each weekly update of the level 3 design schedule is valid.
8. In case of creating a recovery schedule by the Design Consultant, NWC acceptance
on the recovery schedule does not make it a baseline. All progress indicators and
measures are still taken from the approved baseline NOT the recovery plan.
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10.4.3 Flowchart
Figure 10-5 PMM-010-SCH-030 Schedule Management for Design Flowchart
10.4.4 Procedures
10.4.4.1 PMM-010-SCH-030-010 Update Level 1 Design Schedule and Include it in
Tender for Design Documents and Evaluation
Procedure: ● Discuss the design activities with the Cluster Technical Services Team.
● Use the “Primavera P6” to show the estimated durations.
● Update level 1 design schedule with the discussed activities in
“Primavera P6”.
● NWC Project Manager shall review the updated level 1 design schedule
and include it in tender for design documentation and evaluation.
Management Plan.

Consulted:
NWC Project Manager
NWC Project Manager
Informed:
HQ/Cluster Supply Chain GM (as per authority)
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10.4.4.2 PMM-010-SCH-030-020 Develop and Submit Design Level 3 Design Schedule
Procedure: ● After design contract award, the Design Consultant shall use “Primavera
P6” to:
○ identify the design activities clearly.
○ show the intended relationships and dependencies between design
activities.
○ load the resources for activities.
○ show the duration of each design activity, based upon the identified
trades and resources.
○ develop the detailed level 3 design schedule.
● Send all assumptions and constraints for inclusion in the Design
Management Plan.
● Submit the detailed design level 3 schedule to the NWC for review and
approval.

Consulted:
NWC Project Manager
NWC Project Manager
Informed:
See guidelines under PMM-010-SCH-040-020 Develop and Submit
Guidelines:
Construction Level 3 Schedule.
10.4.4.3 PMM-010-SCH-030-030 Approve Level 3 Design Schedule at Cluster
Procedure: ● Within 15 days from submission date, the level 3 design schedule shall
be:
○ reviewed and approved by Cluster Scheduling Section Head and
NWC Project Manager using (PMF-010-SCH-013 Design Schedule
Review Checklist).
○ approved by Cluster Projects GM.
○ raised to Scheduling & Control GM for review and approval using.
Roles: Responsible:
NWC Project Manager
Cluster Projects GM
Design Consultant
Consulted:
Scheduling Lead
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Informed:
10.4.4.4 PMM-010-SCH-030-033 Approve Level 3 Design Schedule at HQ
Procedure: ● Within 7 days from cluster submission date, the level 3 design schedule
shall be:
○ reviewed and approved by Scheduling & Control Director using
(PMF-010-SCH-013 Design Schedule Review Checklist).
○ approved by Scheduling & Control GM.
○ sent back to Cluster Scheduling Section Head for uploading in
ENJAZ system.
Roles: Responsible:
Accountable: Scheduling & Control GM
NWC Project Manager
Consulted:
Scheduling Lead
NWC Project Manager
Informed:
10.4.4.5 PMM-010-SCH-030-036 Upload Level 3 Design Schedule to ENJAZ System
Procedure: ● With 1 day from receiving, the Cluster Scheduling Section Head shall
upload the approved Design Level 3 Schedule to “Primavera P6”
database.

Design Consultant
Informed:
10.4.4.6 PMM-010-SCH-030-040 Update the Approved Level 3 Design Schedule with
Actual Progress
Procedure: ● During the design stage, make weekly updates to the approved level 3
design schedule in the “Primavera P6” to reflect progress and delays of
the design activities.
● Submit the updated Level 3 Design schedule.
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Consulted:
NWC Project Manager
NWC Project Manager
Informed:
10.4.4.7 PMM-010-SCH-030-050 Check the Actual Design Progress Versus Planned
Progress
and delays associated with the design activities.
● Meet with the Design Consultant in the event of any uncertainty or lack
of clarity.
● For behind schedule design activities, in the weekly progress meeting,
agree an appropriate course of action with the Design Consultant to bring
the design schedule back on track.
● Include schedule status in monthly progress reports.
● Upload the project status to ENJAZ system.

Consulted:
Design Consultant
Informed:
10.4.4.8 PMM-010-SCH-030-060 Approve the Recovery Schedule
Procedure: ● Check and review the delay analysis and course of actions proposed by
the Design Consultant to bring the design schedule back on track. Use
as applicable the (PMF-010-SCH-010 Sch. Manual App4 Schedules
Review Checklist).
● Ensure the incorporation of the agreed course of actions in the submitted
recovery schedule which must be in “Primavera P6”.
● Make sure the contractual milestones are in line with the contractual
dates.
● If found satisfactory, accept submitted level 3 design recovery schedule
by the Cluster Scheduling Section Head, Cluster Technical Services
Director and NWC project manager respectively. This acceptance does
not make the recovery an approved baseline.
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Roles: Responsible:
NWC Project Manager
Design Consultant
Consulted:
Informed:
10.4.4.9 PMM-010-SCH-030-070 Review Revised Design Schedule in Case of Time
Extension Variation Request
Procedure: ● Check and review the revised schedule proposed by the Design
Consultant for a Variation Request which includes time extension. Use
as applicable (PMF-010-SCH-010 Sch. Manual App4 Schedules Review
Checklist).
● Check differences between current design schedule and proposed
revised schedule based on the variation request to ensure the fulfillment
of the variation objectives.
● In the proposed schedule, ensure the contractual milestones that not
included in the variation request are in line with the contractual dates.
● Check the stage duration appropriately.
● Recommend approval or disapproval on the revised design schedule for
further processing through (PMM-007-INT-060 Variation Control)
process.
Roles: Responsible:
NWC Project Manager
Design Consultant
Consulted:
Informed:
10.5 PMM-010-SCH-040 Schedule Management for Construction, Testing &

Commissioning and Handover
10.5.1 Objective
The objective of this process is to develop a detailed activity schedule for the Construction
stage and Testing & Commissioning stage and subsequently to monitor and control this activity
schedule within the agreed duration of the stage.
10.5.2 Policies
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1. The level 1 schedule for the construction stage must be updated by the end the tender
for construction stage by the NWC Project Manager liaising with the Cluster Projects
GM and Cluster Scheduling Section Head.
2. The updated level 1 schedule of construction, testing & commissioning and handover
stages must be maintained in the “Primavera P6” as an integral part of the project
schedule.
3. The level 1 schedule of construction, testing & commissioning and handover stages
must only be changed if there is an approved variation (i.e. create a new baseline).
4. The Contractor shall submit a level 2 schedule of for project scope with his bid
proposal.
5. The detailed activity (level 3) schedule construction, testing & commissioning and
handover stages must cover the:
i. Construction stage.
ii. Testing & commissioning stage.
iii. Acceptance and hand over activities (at least submitting the acceptance and
handover request).
6. After contract award the Contractor shall submit level 3 schedule of construction,
testing & commissioning and handover stages for NWC review and approval
maximum after 15 days from site handover. The Supervision Consultant , NWC
Project Manager and Scheduling & Control GM shall review and approve the
submitted level 3 schedule.
7. The approved level 3 schedule of construction, testing & commissioning and handover
stages must be updated weekly during these stages to show actual progress of the
design activities.
8. The approved level 3 schedule of construction, testing & commissioning and handover
stages must be updated weekly during the Construction, testing & commissioning,
handover & close-out stages to show actual progress of the construction activities.
9. The Supervision Consultant and NWC Project Manager shall ensure each weekly
update of the level 3 schedule is valid. NWC project manager must take the according
action such as urge letter.
10. In case of creating a recovery schedule by the Contractor, NWC acceptance on the
recovery schedule does not make it a baseline. All progress indicators and measures
are still taken from the approved baseline NOT the recovery plan.
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10.5.3 Flowchart
Figure 10-6 PMM-010-SCH-040 Schedule Management for Construction, Testing & Commissioning and
Handover Flowchart
10.5.4 Procedures
10.5.4.1 PMM-010-SCH-040-010 Update Level 1 Construction Schedule and Include it
in Tender for Construction Documents and Evaluation
Procedure: ● Discuss the construction activities with the Cluster Project Scheduling &
Control team.
● Use the “Primavera P6” to show the estimated duration.
● Update level 1 construction schedule with the discussed activities in
“Primavera P6”.
● NWC Project Manager shall review the updated level 1 construction
schedule and include it in tender for Construction documentation and
evaluation.
Management Plan.
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Consulted:
NWC Project Manager
NWC Project Manager
Informed:
10.5.4.2 PMM-010-SCH-040-020 Develop and Submit Level 3 Construction Schedule
Procedure: ● After construction contract award, the Contractor shall use “Primavera
P6” to:
○ identify the construction activities clearly.
○ show the intended relationships and dependencies between
construction activities.
○ load the resources for activities.
○ show the duration of each construction activity, based upon the
identified trades and resources.
○ develop the detailed level 3 construction schedule.
● The detailed level 3 construction schedule must include a procurement
schedule for critical material and equipment. It shall be created using
(PMF-010-SCH-003 Procurement Schedule for Critical Materials and
Equipment).
● Explain to the Design Consultant and NWC Project Manager how the
contract BoQ is distributed across the construction level 3 schedule in
the “Primavera P6”.
● Within maximum 15 days after site handover, submit the detailed project
schedule including critical material and equipment schedule to the
Supervision Consultant for review and approval.
● Send all assumptions and constraints for inclusion in the Construction
Management Plan.

Consulted:
Informed:
NWC Project Manager
Guidelines: ● Level 3 schedule should include as a minimum:
○ All assumptions and exclusions that lay at the base of the schedule.
○ Elements used to structure the schedule (phases, locations, WBS,
activity codes (e.g. in “Primavera P6”), etc.).
○ Risk and contingency buffers and their evolution.
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○ Total Float and its evolution.

○ The strategy and methodology to achieve the contract milestones.
○ All relevant data, calculations and assumptions used in deriving the
activities’ durations.
○ Calendars used for different activities and the reasoning behind it.
○ Identification and analysis of the critical and / or longest path(s) and
near critical paths.
○ Coordination and interface activities.
● The level 3 schedule is a comprehensive project schedule containing the
Contractor’s scope of work at a level of detail that provides management
with an optimum plan for the work, and project supervision with a
roadmap for implementing the schedule.
● The level 3 schedule contains all works that the Contractor is
contractually responsible for performing, managing, monitoring, or
reporting. Additionally, activities or constraints by others that affect
Contractor’s work schedules.
● The level 3 schedule complies with the level 1 and level 2 schedules and
provides work volume and priority requirements to lower level schedules.
● The level 3 schedule includes all significant events (e.g., key
deliverables, contractual milestones, critical interfaces, etc.) that must be
integrated during performance of the project.
● The contract is the absolute measure of scope of work by which project
controls verifies the scope of supply, services, and quantities in the level
3 schedule.
10.5.4.3 PMM-010-SCH-040-030 Approve Level 3 Construction Schedule at Cluster
Procedure: ● Within 15 days from submission date, the level 3 construction schedule
shall be:
○ reviewed and approved by Supervision Consultant and NWC Project
Manager using (PMF-010-SCH-010 Sch. Manual App4 Construction
Schedules Review Checklist).
○ approved by Cluster Projects GM.
○ raised to Scheduling & Control GM for review and approval using.
● See (PMF-011-COS-023 Construction Process Flow in Governance
Document).
Roles: Responsible:
NWC Project Manager
Cluster Projects GM
Contractor
Consulted:
Scheduling Lead
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Informed:
10.5.4.4 PMM-010-SCH-040-033 Approve Level 3 Construction Schedule at HQ
Procedure: ● Within 7 days from cluster submission date, the level 3 construction
schedule shall be:
○ reviewed and approved by Scheduling & Control Director using
(PMF-010-SCH-010 Sch. Manual App4 Construction Schedules
Review Checklist).
○ approved by Scheduling & Control GM.
○ sent back to Cluster Scheduling Section Head for uploading in
ENJAZ system.
Document).
Roles: Responsible:
Accountable: Scheduling & Control GM
NWC Project Manager
Consulted:
Scheduling Lead
NWC Project Manager
Informed:
10.5.4.5 PMM-010-SCH-040-036 Upload Level 3 Construction Schedule to ENJAZ
System
Procedure: ● With 1 day from receiving, the Cluster Scheduling Section Head shall
upload the approved Design Level 3 Schedule to “Primavera P6”
database.
Document).

Informed:
Contractor
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10.5.4.6 PMM-010-SCH-040-040 Agree the Use of Progress Curves and Dashboards
Procedure: ● Discuss and agree with the Supervision Consultant and NWC Project
Manager which types of progress curves and dashboards will be used to
illustrate progress in periodic progress report submissions.
● Configure the agreed curves and dashboards in the “Primavera P6” to
the satisfaction of the Supervision Consultant and NWC Project
Manager.

Consulted:
NWC Project Manager
Informed:
NWC Project Manager
Guidelines: ● See (EPM-KPP-PR-000003 Project Schedule Curves Procedure).
10.5.4.7 PMM-010-SCH-040-050 Update the Construction Schedule with Actual

Progress and Submit Look-Ahead Schedule
Procedure: ● During the design stage make weekly updates to the approved level 3
construction schedule in “Primavera P6” to reflect progress and delays
of the design activities.
● Prepare/update 2 weeks look ahead schedules every week (PMF-010-
SCH-005 Two Weeks Lookahead).
● Submit the updated Level 3 Construction schedule and the 2 weeks look
ahead schedules.

Consulted:
NWC Project Manager
Informed:
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10.5.4.8 PMM-010-SCH-040-060 Check the Actual Construction Progress Versus

Planned Progress
and delays associated with the construction activities.
● Meet with the Contractor in the event of any uncertainty or lack of clarity.
● For behind schedule construction activities, in the weekly progress
meeting, agree an appropriate course of action with the Contractor to
bring the construction schedule back on track.
● Include schedule status in monthly progress reports.
● Upload the project status to ENJAZ system.
Roles: Responsible:
NWC Project Manager
Consulted:
Contractor
Informed:
10.5.4.9 PMM-010-SCH-040-070 Approve Recovery Schedule and Delay Analysis
Submitted by Contractor
Procedure: ● Check and review the delay analysis and course of actions proposed by
the Contractor to bring the Construction schedule back on track. Use
(PMF-010-SCH-010 Sch. Manual App4 Schedules Review Checklist).
● Check the incorporation of the agreed course of actions in the submitted
recovery schedule which must be in “Primavera P6”.
● Make sure the contractual milestones are in line with the contractual
dates.
● If found satisfactory, accept the recovery schedule by the Supervision
Consultant then NWC Project Manager. This acceptance does not make
the recovery an approved baseline.

NWC Project Manager
Consulted:
Contractor
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NWC Project Manager

Informed:
10.5.4.10 PMM-010-SCH-040-080 Review Revised Construction Schedule in Case of
Time Extension Variation Request
Procedure: ● Check and review the revised schedule proposed by the Contractor for
a Variation Request which includes time extension. Use (PMF-010-SCH-
010 Sch. Manual App4 Schedules Review Checklist).
● Check differences between current construction schedule and proposed
revised schedule based on the variation request to ensure the fulfillment
of the variation objectives.
● In the proposed schedule, ensure the contractual milestones that not
included in the variation request are still in line with the contractual dates.
● Check the stage duration appropriately.
● Recommend approval or disapproval of the revised construction
schedule for further processing through (PMM-007-INT-060 Variation
Control) process.
Roles: Responsible:
NWC Project Manager
Consulted:
Contractor
Informed:
The table below identifies the KPIs of Project Schedule Management. The NWC Project Manager
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Table 10-2 Project Schedule Management KPIs

Detail Measurement
Approved updated
projects that have
level 1 schedule at
1 approved updated level Monthly 0 1 >1
initial planning
1 schedule by the end of
stage
initial planning stage.
Approved updated projects that have
level 1 schedule at approved updated level
2 Monthly 0 1 >1
tender for 1 schedule by the
construction stage beginning of tender for
construction stage.

Submission of level
has the design
3 schedule within
consultant submitted the
3 15 days from Monthly Yes NA No
level 3 schedule within
commencement
15 days from
date
commencement date.

Submission of level
has the contractor
3 schedule within
4 submitted the level 3 Monthly Yes NA No
15 days from site
schedule within 15 days
handover date
from site handover date.
Approved updated ongoing design projects
level 3 schedule of in the cluster that did
5 design projects per NOT have an approved Monthly 0 2 >2
month in the level 3 schedule within
cluster 15 days from schedule
submission date.
Approved updated ongoing construction
level 3 schedule of projects in the cluster
construction or that did NOT have an
6 Monthly 0 2 >2
EPC projects per approved level 3
month in the schedule within 15 days
cluster from schedule
submission date.
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Detail Measurement

number of ongoing
design projects in the
On track approved cluster that:
updated level 3 - have NOT on track
7 schedule of design updated level 3 Monthly 0 3 >3
projects per month schedule.
in the cluster or
- NOT have an approved
updated level 3
schedule.

number of ongoing
construction and EPC
On track approved
that:
updated level 3
- have NOT on track
8 schedule of design Monthly 0 3 >3
updated level 3
projects per month
schedule.
in the cluster
or
- NOT have an approved
updated level 3
schedule.
date number of ongoing
projects with a schedule
Delayed projects in variance (SV) that "10%
9 Monthly 0 4% > 4%
the cluster < SV ≤ 25%" in a cluster
to the year-to-date total
ongoing projects in the
cluster.
date number of ongoing
projects that fulfill
Troubled projects "Troubled Project
10 Monthly 0 4% > 4%
in the cluster Criteria" in a cluster to
the year-to-date total
ongoing projects in the
cluster.
10.7 Attachments
SCH Project Schedule Management).
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Table 10-3 Project Schedule Management forms, templates and guidelines
Document No. Title
EPM-KPP-PR-000002 Project Schedule Development Procedure
EPM-KPP-PR-000003 Project Schedule Curves Procedure
EPM-KPP-PR-000005 Project Contractor Requirements for Planning & Scheduling Procedure
EPM-KPP-PR-000008 Project Schedule Claims Procedure
PMF-010-SCH-003 Procurement Schedule for Critical Materials and Equipment
PMF-010-SCH-005 Two Weeks Lookahead
PMF-010-SCH-006 Scheduling Management Manual Rev.01.2
PMF-010-SCH-007 Sch. Manual App1 WBS Code and Structure
PMF-010-SCH-008 Sch. Manual App2 RBS Code and Structure
PMF-010-SCH-009 Sch. Manual App3 Narrative Report Template
PMF-010-SCH-01 0 Sch. Manual App4 Construction Schedule Review Checklist
PMF-010-SCH-011 Sch. Manual App5 Compliance Sheet
PMF-010-SCH-012 Sch. Manual App6 Cash Flow Report
PMF-010-SCH-013 Design Schedule Review Checklist
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Section 11 - Project Cost Management
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History Page

12/01
● Table "Cost Estimate Classes” is elaborated.
● Requirements to develop each Cost Estimate Class are added.
● The process “PMM-009-COS-010 Cost Management During NWC Five Years
Projects Portfolio Plan” is removed as it is covered in FYPPP Section.
● The process “PMM-011-COS-020 Plan Project Cost Management” is elaborated.
● The process “PMM-011-COS-030 Cost Management During Initial Planning Stage”
is revised.
● The process “PMM-011-COS-035 Cost Management During the Tender for Design
Stage” is added.
Change ● The process “PMM-011-COS-040 Cost Management During the Design Stage” is
Description revised.
● The process “PMM-011-COS-050 Cost Management During the Tender for
Construction Stage” is revised.
● The process “PMM-009-COS-060 Cost Management during the Construction,
Testing & Commissioning and Handover & Closeout Stages” is revised and split into
three processes:
○ “PMM-011-COS-060 Control Construction BOQ”
○ “PMM-011-COS-070 Payments during Construction, Testing & Commissioning
and Handover & Closeout Stages”
○ “PMM-011-COS-080 Monitor and Control Budget and Cashflow”
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06/02
This section is developed as an update to “Cost” section in first version the Project
the changes:
● Changing the cost estimate level to class as per Mashroat Five-Year Projects
Portfolio Planning and Mashroat White Book.
● Updating the following guidelines:
○ Cost Budgeting Guidelines
○ Cost Estimating Guidelines
Change ● Developing guidelines for Cost Control and Reporting.
Description
● Updating the standard BOQ for water and sewer networks.
● Adding Plan cost management process.
● Adding procedure for payment application of Design Consultant.
● Adding procedure for developing class 3 cost estimate at 30% design
completion.
● Updating processes flowcharts.
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11 Project Cost Management

The subject of this particular section of the Project Management Manual (PMM) is Project Cost
Management.
The high-level process map for Project Cost Management is illustrated below in Figure 11-1:
Figure 11-1 High-Level Process Map for Project Cost Management
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Cost estimate is classified into five estimate classes which range from the lowest class of project
definition and accuracy in Class 5 to the highest class in Class 1.
Table 11-1 Cost Estimate Classes
Produced at Phase/Stage
Estimate Accuracy
Description
Class Range
Design Bid Build Design & Build (EPC)
FYPPP*1 Phase A
Indicative /
Class 5 (Initiate Portfolio) -25% to +50%
Conceptual
At Initial Cost Estimate for Initial Business Case
FYPPP*1 Phase C
Feasibility /
Class 4 Order of (Screen Initial Portfolio) -15% to +25%
Magnitude
At Final Business Case Development
PLC*2 Stage 4 PLC*2 Stage 3

Class 3 Preliminary (Design) (Tender for Design & Build) -10% to +20%
At 30% Design Completion At 30% Design Completion

(Design) (Design & Build)
Class 2 Engineer’s -10% to +15%
At 90% Design Completion for At 90% Design Completion
Construction Tender

(Design) (Design & Build)
Class 1 Definitive At rigorous estimating effort At rigorous estimating effort -5% to +10%
and generally used to support and generally not useful in
fixed-priced construction EPC Contracts.
proposals.
*1 Five-Year Projects Portfolio Planning

*2 Project Life Cycle
Requirements to develop each Cost Estimate Class:

● Class 5 cost estimate requires at least the following:
○ For transmission line projects:
- identification of line routs.
- identification of line lengths.
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○ For network projects: identification of served area.

○ For water tank projects:
- identification of tank location.
- identification of tank capacity.
○ For STPs projects:
- identification of STP capacity.
- identification of STP location.
- distance between the STP and discharge/disposal site.
○ For boosting stations:
- identification of station capacity.
- identification of station altitude.
○ For water treatment plants:
- identification of plant capacity.
- identification of plant location.
- targeted water quality.
- water treatment technology.
● Class 4 cost estimate requires at least the following:
○ For transmission line projects:
- identification of line routs.
- identification of line lengths.
- required micro tunneling length.
- number road crosses.
- approximate line diameter.
- line pipe materials.
○ For network projects:
- identification of street lengths in served area.
- Approximate line diameter average.
- Line pipe materials.
○ For water tank projects:
- identification of tank location.
- identification of tank capacity.
- tank material.
○ For STPs:
- identification of STP capacity.
- identification of STP location.
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- identification of STP altitude.

- sewage treatment technology.
- identification of distance between the STP and discharge/disposal site.
○ For boosting stations:
- identification of station capacity.
- identification of station altitude.
- inlet and outlet diameters.
- pump types.
○ For water treatment plants:
- identification of plant capacity.
- identification of plant location.
- targeted water quality.
- water treatment technology.
- water resource
● Class 3 cost estimate requires 30% design package.
● Class 2 cost estimate requires 90% design package.
11.1 PMM-011-COS-020 Plan Project Cost Management

11.1.1 Objective
The objective of this process is to develop the Cost Management Plan Section of the Project
Management Plan and ensure that all cost estimates are timely and properly developed. The
planning is also undertaken to ensure that adequate cost monitoring and update are performed
throughout the project life cycle.
11.1.2 Policies
1. Each project must have a separate section for cost management in the Project
Management Plan, created by the NWC Project Manager, Cluster Cost Control
Section Head and the Cluster Cost Estimation Specialist and used as the guiding
construction) including Cost Management Plan Section for the project. These
management plans must comply with the cost management requirements defined in
the NWC Project Management Plan and must be approved by NWC during
3. The Cost Management Plans in PMPs of NWC, Design and Construction must be
4. The NWC Cost management plan shall cover all Cost Estimate Classes from Initial
Planning stage to project closeout based on the stage deliverables, required accuracy
and any applicable other factors.
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11.1.3 Flowchart
Figure 11-2 PMM-011-COS-020 Plan Project Cost Management Flowchart
11.1.4 Procedures
11.1.4.1 PMM-011-COS-020-010 Develop the Cost Management Plan Section of the

includes a dedicated section for Cost management.
● Update the Project Cost Section throughout the lifecycle with the
Roles: Responsible:
NWC Project Manager
Cluster Projects GM
Consulted:
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Informed:
Cluster Projects GM
11.1.4.2 PMM-011-COS-020-020 Approve the Cost Management Plan Section of
Procedure: ● Review and Approve the Cost Management Plan Section of Project
Management Plan.
satisfactorily.

Consulted:
NWC Project Manager
Cluster Projects GM
Informed:
NWC Project Manager
Cluster Projects GM
11.1.4.3 PMM-011-COS-020-030 Ensure Cost Requirements and Technical Evaluation
are Included in the Design Tender Documents

includes a dedicated section for Cost management.
own Cost Management Plan and must submit it during the contractual
proposals includes Cost assessment criteria, which addresses:

Consulted:
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11.1.4.4 PMM-011-COS-020-040 Develop Project Cost Management Plan Section in

Procedure: ● Develop Project Cost Management Plan Section in the Project Design
Management Plan.
● Ensure that the Project Cost Management Plan Section in the Project
Design Management Plan is in alignment with the Project Cost
Director about the development of the Project Cost Management Plan
Section.
● Include the Project Cost Management Plan Section in the Project Design
Management Plan to be approved as part of the Project Design
Management Plan.

NWC Project Manager
Consulted:

are Included in the Construction Tender Documents
Cost Management Plan and must submit it during the contractual
proposals includes Cost assessment criteria, which addresses:

Consulted:
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11.1.4.6 PMM-011-COS-020-060 Develop the Construction Cost Management Plan

Section
Procedure: ● Develop Project Cost Management Plan Section in the Project

● Ensure that the Project Cost Management Plan Section in the Project
Design Management Plan is in alignment with the Project Cost
the development of the Project Cost Management Plan Section.
● Include the Project Cost Management Plan Section in the Project

NWC Project Manager
Consulted:
11.2 PMM-011-COS-030 Cost Management During Initial Planning Stage

11.2.1 Objective
The objective of this process is for Cluster Projects Services Team to re-validate the project
budget, taking account of elapsed time and possible changed circumstances since the Five-
Year Projects Portfolio plan took place. The re-validation exercise is an integral part of the
value management process, which ties the project to a preferred design option.
11.2.2 Policies
1. Only the budget portion allocated for the initial planning stage must be spent during
the initial planning stage. This is known as the “Initial Planning Budget”.
2. The target budget made available to the nominated NWC Project Manager must be
aligned with the selected design option, as agreed by stakeholders during
optioneering.
3. Reserves and contingencies (if any) must be updated and re-substantiated against
formally recorded assumptions, issues and risks.
4. Electronic source files associated with cost management in this phase of the project
lifecycle must be locked to prevent tampering and corruption.
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11.2.3 Flowchart
Figure 11-3 PMM-011-COS-030 Cost Management During the Initial Planning Stage Flowchart
11.2.4 Procedures
11.2.4.1 PMM-011-COS-030-010 Update Class 4 Cost Estimate for Design-Bid-Build
Projects
Procedure: ● Capture class 4 cost estimate from Final Business Case.

● Refer to the Risk Workshop No. 2 Report for identified risks.
● Record the forecast cost details of the preferred option. Refer to the Cost
Database as required.
● Refer to (PMF-011-COS-001 Cost Estimating Guidelines) and (PMF-
011-COS-002 Cost Budgeting, Trending and Forecast Guidelines).
● Consider key studies and plans that feed into revising the cost estimate
which include but not limited to the following:
○ Updated Concept Masterplan and Development Framework
○ Related Executed projects from the Portfolio
○ Environmental Assessment
○ Land Acquisition Strategy
○ Permitting Plan
○ Risk Assessment Update
● Review and update the class 4 cost estimate.
● Send the updated class 4 cost estimate to NWC Project Manager for
inclusion in RFP.
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NWC Project Manager

Consulted:
Director
NWC Project Manager
Informed:
Director
Director
11.2.4.2 PMM-011-COS-030-020 Develop Class 3 Cost Estimate for EPC Projects
Procedure: ● Refer to the Risk Workshop No. 2 Report for identified risks.
● Record the forecast cost details of the preferred option. Refer to the Cost
Database as required.
● Consider Key studies and plans that feed into preparation of the cost
estimate and budget requirements which include but not limited to the
following:
○ Concept Masterplan and Development Framework
○ 30% Design Package
○ Environmental Assessment
○ Land Acquisition Strategy
○ Permitting Plan
○ Risk Assessment Update
● Develop the class 3 cost estimate.
● Assist the NWC Project Manager to ensure that assumptions, issues and
risks are formally recorded and attached to the completed form, as well
as included in the Project Management Plan.

NWC Project Manager
Consulted:
Director
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NWC Project Manager

Informed:
Director
Director
11.2.4.3 PMM-011-COS-030-040 Update the “Primavera P6” Database
Procedure: ● Update the “Primavera P6” Database by Class 3 Cost Estimate.

● Check with Cluster Finance Department that the update has been
reflected in the NWC Finance System.

Consulted:
NWC Project Manager
Cluster Finance GM
Informed:
NWC Project Manager
Director
11.3 PMM-011-COS-035 Cost Management During the Tender for Design

Stage
11.3.1 Objective
The objective of this process is to award a design contract, which will achieve the scope,
Schedule, cost, quality and HSE objectives of the project within the approved target budget of
the project.
11.3.2 Policies
1. A Project Cost Plan must be reconciled against the completed initial planning stage,
showing that the anticipated final cost is within the project targeted budget.
2. A pre-tender estimate must be produced as a priced design BOQ format applicable
to the type of project (network or plant).
re-aligned with the value of the awarded design contract.
formally recorded assumptions, issues and risks, following transparent transfer into
the main design contract through the tendering process.
5. Electronic source files associated with cost management in this stage of the project
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11.3.3 Flowchart
Figure 11-4 Cost Management During the Tender for Design Stage
11.3.4 Procedures
● Ensure Cost Requirements are included in the design RFP.
own Quality Management Plan and must submit it during the contractual
proposals includes cost assessment criteria, which addresses:

Consulted:
Informed:
11.4 PMM-011-COS-040 Cost Management During the Design Stage

11.4.1 Objective
The objective of this process is to carry design of the preferred, selected option (arising from
earlier value management) according to the target budget. This must be assured progressively
during the design stage of the project, using specialist support provided by the Cluster Projects
Services Team.
11.4.2 Policies
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1. A Project Cost Forecast must be maintained up to date (minimum monthly update

basis) during Design Stage, for reconciliation of Anticipated Final Cost versus the
project target budget.
2. The design schedule must be maintained in the “Primavera P6” as an integral part of
the project schedule, and project cashflow forecasts must be produced from build-up
of cost data taken off from submitted drawings.
3. Every current invoice application shall be submitted on monthly basis regardless the
amount of performed work on maximum the 7th days of every month. The invoice
shall cover the month works.
4. Every invoice shall be approved only if all works in the submitted the invoice are:
i. formally accepted by NWC or NWC representative.
ii. do not have an open Quality NCR.
5. The Project budget be changed only if there is an approved variation (i.e. create a
new baseline in “Primavera P6”).
6. Only the budget portion allocated for the Design must be spent from the end of Initial
Planning up to end of tender for construction stage (construction contract award). This
is known as the “Development Budget”.
7. The design schedule must be updated weekly during the Design stage to show actual
progress of the design activities as a draw-down of the “Development Budget”.
formally recorded assumptions, issues and risks.
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11.4.3 Flowchart
Figure 11-5 PMM-011-COS-040 Cost Management During the Design Stage Flowchart
11.4.4 Procedures
11.4.4.1 PMM-011-COS-040-010 Approve Design Consultant Invoice
Procedure: ● NWC Project Manager shall receive hardcopy of the Design Consultant
monthly current invoice and its supporting documents.
● If Design Consultant does not submit the current invoice maximum the
7th of the month, NWC Project Manager shall send an urge letter to the
Design Consultant.
● NWC Project Manager shall within 7 days from invoice submission:
○ with Cluster Cost Control Section Head and Cluster Technical
Services Director, he shall check the submitted monthly current
invoice and its supporting documents.
○ discuss with Design Consultant any discrepancies and receive from
him any required corrections.
○ review and approve the monthly current invoice considering:
- Verify the overall invoice format and calculations for accuracy
and compliance with the Contract’s terms and conditions.
- Verify the inclusion of any due deductions or penalties.
- Verify the invoice items, prices, quantities are in conformity with
the BOQ included in the Contract Documents and the quantities
are verified against actual installed units of Work or Services
completed in the period to which the Application refers.
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- Verify that all required deliverables have been inspected and

accepted to the Authorized Representative or Department
Representative.
- Verify that any insurances, bonds, securities and like are still
valid and in effect for the Works or Services.
- Verify / Assess any back-charges, retentions, delay penalties or
other deductions to the Payment amount that the NWC is
entitled to withhold in accordance with the Agreement.
- Create a “Completion” / “Work Confirmation” Certificate in
iSupplier system, print a hardcopy and sign the hardcopy.
- Send a copy the of all invoice documents to the Design
Consultant including a copy of the signed “Completion” / “Work
Confirmation” Certificate.
● Design Consultant shall upload the signed copy of the monthly current
invoice to NWC system within 1 day.
● The NWC Project Manager shall approve the uploaded monthly current
invoice 3 days.
● The Cluster Projects GM shall give final approval monthly current
invoice, then forward it to Finance Department within 3 days.
● The NWC Project Manager shall update the progress and current invoice
status on ENJAZ system within 1 day.
● For final invoices perform the same steps above and ensure the package
completion as applicable using (PMF-011-COS-021 Final Invoice
Checklist).
NWC Project Manager
Roles: Responsible:
Cluster Projects GM
Design Consultant
Consulted:
Cluster Finance GM
Informed:
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11.4.4.2 PMM-011-COS-040-020 Develop Class 3 Cost Estimate within 30% Design

Package
Procedure: ● Develop Class 3 Cost Estimate for the developed 30% Design package.
During development ensure:
○ Performing adequate quantity survey and measurements from
design drawings.
○ Considering the formal Technical Services forms, policies,
specifications, database and requirements that related to Cost
Estimation,
○ Referring to (PMF-011-COS-001 Cost Estimating Guidelines) and
(PMF-011-COS-002 Cost Budgeting, Trending and Forecast
Guidelines).
○ Considering studies and external plans and requirements that
related to preparation of the Class 3 Cost Estimate which include but
- Concept Master plan and Development Framework
- Initial Environmental Assessment
- Land Acquisition Strategy
- Permitting Plan
- Risk Assessment Update
○ Assumptions, issues and risks are formally recorded and considered
in Class 3 Cost Estimate.
● Include the Class 3 Cost Estimate in the 30% Design Package that to be
submitted to NWC for review and approval.

NWC Project Manager
Consulted:
Cluster Projects GM
NWC Project Manager
Informed:
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11.4.4.3 PMM-011-COS-040-025 Approve Class 3 Cost Estimate
Procedure: ● Receive the Class 3 Cost Estimate for the developed 30% Design
Package from NWC Project Manager and Cluster Technical Services
Director
● Review Class 3 Cost Estimate for the developed 30% Design package
ensuring the alignment to:
○ the formal Technical Services forms, policies, specifications,
database and requirements that related to Cost Estimation,
○ (PMF-011-COS-001 Cost Estimating Guidelines) and (PMF-011-
COS-002 Cost Budgeting, Trending and Forecast Guidelines).
○ studies and external plans and requirements that related to
preparation of the Class 3 Cost Estimate which include but not
limited to the following:
- Permitting Plan
○ formally recording and considering the assumptions, issues and
risks in Class 3 Cost Estimate.
○ comparing to NWC Cost Database as required.
● Approve/Reject Class 3 Cost Estimate providing adequate comments
and feedback.
● Ensure the inclusion of the approval/rejection of Class 3 Cost Estimate
in the 30% Design package feedback that to be sent to Design
Consultant.
Roles: Responsible:
NWC Project Manager
Consulted:
Design Consultant
NWC Project Manager
Informed:
Director
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11.4.4.1 PMM-011-COS-040-030 Develop Class 2 Cost Estimate within 90% Design

Package
Procedure: ● Develop Class 2 Cost Estimate for the developed 90% Design package.
During development ensure:
○ Performing adequate quantity survey and measurements from
design drawings.
○ Considering the formal Technical Services forms, policies,
specifications, database and requirements that related to Cost
Estimation,
○ Referring to (PMF-011-COS-001 Cost Estimating Guidelines) and
(PMF-011-COS-002 Cost Budgeting, Trending and Forecast
Guidelines).
○ Considering studies and external plans and requirements that
related to preparation of the Class 3 Cost Estimate which include but
- Permitting Plan
○ Assumptions, issues and risks are formally recorded and considered
in Class 3 Cost Estimate.
● Include the Class 3 Cost Estimate in the 30% Design Package that to be
submitted to NWC for review and approval.

NWC Project Manager
Consulted:
Cluster Projects GM
NWC Project Manager
Informed:
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11.4.4.2 PMM-011-COS-040-035 Approve Class 2 Cost Estimate
Procedure: ● Receive the Class 2 Cost Estimate for the developed 90% Design
Package from NWC Project Manager and Cluster Technical Services
Director.
● Review Class 2 Cost Estimate for the developed 90% Design package
ensuring the alignment to:
○ the formal Technical Services forms, policies, specifications,
database and requirements that related to Cost Estimation,
○ (PMF-011-COS-001 Cost Estimating Guidelines) and (PMF-011-
COS-002 Cost Budgeting, Trending and Forecast Guidelines).
○ studies and external plans and requirements that related to
preparation of the Class 3 Cost Estimate which include but not
limited to the following:
- Permitting Plan
○ formally recording and considering the assumptions, issues and
risks in Class 2 Cost Estimate.
○ comparing to NWC Cost Database as required.
● Approve/Reject Class 2 Cost Estimate providing adequate comments
and feedback.
● Ensure the inclusion of the approval/rejection of Class 2 Cost Estimate
in the 90% Design package feedback that to be sent to Design
Consultant.
Roles: Responsible:
NWC Project Manager
Consulted:
Design Consultant
NWC Project Manager
Informed:
Director
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Procedure: ● Update the “Primavera P6” Database by class 2 Cost Estimate.

● Use only the information provided in Class 2 Cost Estimate.
● Check with Cluster Finance Dept. if any updates need to be reflected in
the NWC Finance System.
Consulted: Cluster Cost Estimation Specialist

Cluster Finance GM
Informed:
Director
NWC Project Manager
11.4.4.4 PMM-011-COS-040-050 Perform Cost Impact Analysis in Case of Design
Variation Request
Procedure: ● Perform Cost Impact Analysis considering all following bullets.

● Take-off measurements from the submitted drawings, or from a detailed
sketch of the requested design change.
● Use the Cost Estimate Form and the BOQ that approved by Technical
Services Department.
● Refer to the Cost Database as required.
● Assist the Project Manager to ensure that assumptions, issues and risks
are formally recorded and attached to the completed form, as well as
included in the Project Management Plan.

NWC Project Manager
Consulted:
Design Consultant
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NWC Project Manager

Informed:
Director
Director
11.5 PMM-011-COS-050 Cost Management During the Tender for
Construction Stage
11.5.1 Objective
The objective of this process is to award a construction contract, which will achieve the scope,
Schedule, cost, quality and HSE objectives of the project within the approved target budget of
the project.
11.5.2 Policies
1. A Project Cost Plan must be reconciled against the completed design, showing that
the Anticipated Final Cost is within the project’s target budget.
2. A pre-tender estimate must be produced as a priced construction BOQ format
applicable to the type of project (network or plant).
re-aligned with the value of the awarded construction contract.
formally recorded assumptions, issues and risks, following transparent transfer into
the main construction contract through the tendering process.
5. Electronic source files associated with cost management in this stage of the project
11.5.3 Flowchart
Figure 11-6 PMM-011-COS-050 Cost Management During the Tender for Construction Stage Flowchart
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11.5.4 Procedures
11.5.4.1 PMM-011-COS-050-010 Collect Tender Cost Estimate (Class 2 / Class 3) from
Design Package and Include in RFP
Procedure: ● For Design-Bid-Build projects:

○ Collect the Class 2 Cost Estimate that developed from 90% design
package that approved during the design stage.
○ Ensure that the used BOQ template is the relevant one for project
type.
○ Compare the resulting cost estimate against the project target
budget. If found not acceptable, then escalate to the Cluster Projects
GM for discussion and agreement on action to be taken.
● For Design & Build projects (EPC projects):
○ Collect the Class 3 Cost Estimate that developed from the 30%
design package that approved during the initial planning stage.
○ Ensure that the used BOQ template is the relevant one for project
type.
○ Compare the resulting cost estimate against the project target
budget. If found not acceptable, then escalate to the Cluster Projects
GM for discussion and agreement on action to be taken.
● Include the tender cost estimate (Class 2 / Class 3) in RFP package
which shall be submitted to Technical Services GM for review and
approval.
Roles: Responsible:
NWC Project Manager
NWC Project Manager
Consulted:
Procedure: ● Update the “Primavera P6” Database by Class 2 Pre-Tender Cost

Estimate.
● Check with Cluster Finance Department that the update has been
reflected in the NWC Finance System.
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Consulted:
NWC Project Manager
Cluster Finance GM
Informed:
NWC Project Manager
Director
11.6 PMM-011-COS-060 Control Cost during Construction, Testing &
Commissioning and Handover & Closeout Stages
11.6.1 Objective
The objective of this process is to control every change applied to Construction BOQs targeting
a specific budget. These changes typically appear when revising the construction BOQ or
applying an approved Variation Order.
11.6.2 Policies
1. A Project Cost forecast must be maintained up-to-date (minimum monthly update
basis) during the Construction and Handover phases, for reconciliation of Anticipated
Final Cost versus the project target budget.
2. The construction and handover schedules must be maintained in the “Primavera P6”
as integral parts of the project schedule, and project cashflow forecasts must be
produced from value of work done to-date and projected Schedule and cost to
completion.
3. The advance payment request shall be disapproved if it exceeds the limit of advance
payment that stated in NWC Financial Policy.
4. The advance payment shall not be approved unless the Contractor submits, along
with his request, a bank guarantee against the advance payment. The bank guarantee
must be issued, with VAT, equal to the value of advance amounts with expiry till end
of contract.
5. Also, the following supporting documents shall be submitted along with the advance
payment request:
i. Purchase Order.
ii. Proforma invoice (for payment).
iii. Contract/agreement.
iv. Bank Guarantee.
v. Commercial Registration Certificate.
vi. Certificate of Subscription to Chamber of Commerce & Industry.
vii. Certificate of GOSI.
viii. Saudization Certificate.
ix. Certificate of Zakat & Income.
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6. Paid advance payment shall be recovered at instalments of percent equal to (Advance

payment value to Contract Value) from all monthly invoices starting from remaining
invoices in the contract.
7. If the project went terminated for any reason, NWC Project Manager shall immediately
request to settle the advance payment.
8. The Construction BOQ must only be changed unless one of the following happens:
i. NWC requests to revise the Construction BOQ.
ii. There is an Approved Variation.
9. The Project budget must only be changed if there is an Approved Variation (i.e. create
a new baseline in “Primavera P6”).
10. Only the budget portion allocated for the Construction, testing & commissioning and
Handover & Close-out stages must be spent from the end of Tender for Construction
stage (contract award) up to end of Handover & Close-out stage (beginning liability
and operation period). This is known as the “Contract Budget”.
11.6.3 Flowchart
Figure 11-7 PMM-011-COS-060 Control Cost during Construction, Testing & Commissioning and
Handover & Closeout Stages Flowchart
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11.6.4 Procedures
11.6.4.1 PMM-011-COS-060-010 Develop and Submit Revised BOQ
Procedure: ● The Contractor shall quantify all project works included in Contract BoQ
based on actual site conditions.
● Contractor shall develop and submit a revised BoQ incorporating his
findings within 90 days from the site handover using form (PMF-011-
COS-026 Revised BoQ Form).
Document).

NWC Project Manager
Consulted:
NWC Project Manager
Informed:
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11.6.4.2 PMM-011-COS-060-020 Approve Revised BoQ Submitted by Contractor at

Cluster
Procedure: ● The revised BoQ shall be sequentially reviewed and signed within 14
days by:
● NWC Project Manager shall initiate the approval form using (PMF-011-
COS-029 Revised BOQ Approval Form) and raise all documents to
Cluster Projects GM for 1st approval.
● Cluster Projects GM shall raise to Scheduling & Control GM for review in
following cases:
○ MEWA projects
○ NWC projects that fulfill the following conditions:
- Does not include any new BoQ items or changes in existing item
description.
- Does not include changes in contractual project location.
- Does not include contract value increase.
- Does not include contract value decrease more than 20% of
contract value.
- The sum of all positive value changes does not exceed 30% of
contract value.
- The sum of all negative value changes does not exceed 30% of
contract value.
- Does not increase the contractual duration.
● If the project is not one of the above two cases, the submitted revised
BoQ shall be processed as a Variation through (PMM-007-INT-060
Variation Control) process.
Document).
Roles: Responsible:
NWC Project Manager
Cluster Projects GM
Consulted:
Contractor
Informed: HQ/Cluster Supply Chain GM (as per authority)
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HQ
Procedure: ● Scheduling & Control GM shall review and endorse, within 14 days, and
raise the revised BoQ to Capital Projects & Technical Services VP.
● The Capital Projects & Technical Services VP shall, within 2 days, review
and give:
○ 1st approval for MEWA projects, then forward the revised BoQ to the
authorized person in MEWA for final approval.
○ final approval for NWC project, then forward the revised BoQ to the
Cluster/HQ Procurement (as per authority) for issuance to
Contractor.
● The approved revised BoQ shall be forwarded to the Cluster/HQ
Procurement (as per authority) to issue the approved revised BoQ to
Contractor along with any other required document.
Document).
Roles: Responsible:
NWC Project Manager
Consulted:
Cluster Projects GM
Informed:
Cluster Senior GM
Cluster Projects GM
MEWA
Procedure: ● Give final approval within 7 days on MEWA projects.

● Forwarded the approved revised BoQ to the Cluster/HQ Procurement (as
per authority) to issue the approved revised BoQ to Contractor along with
any other required document.
Document).
Roles: Responsible:
NWC Project Manager
Consulted:
Cluster Projects GM
Informed:
Cluster Senior GM
Cluster Projects GM
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11.6.4.5 PMM-011-COS-060-050 Perform Cost Impact Analysis in Case of

Construction Variation Request
Procedure: ● Take-off measurements from the submitted Variation Request drawings,

or from a detailed sketch of the requested change.
● Use the relevant BOQ template for the type of project, associated with
the applicable method of measurement.
● Refer to the Cost Database as required.
● Assist the Project Manager to ensure that assumptions, issues and risks
are formally recorded and attached to the completed form, as well as
included in the Project Management Plan.

NWC Project Manager
Consulted:
Design Consultant
NWC Project Manager
Informed:
Director
Director
11.6.4.6 PMM-011-COS-060-060 Update the BOQ Based on Approved Variations
Procedure: ● Update the BOQ to incorporate the Approved Variation items.

Roles: Responsible:
Consulted:
Contracts Manager
Informed:
Contractor
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11.6.4.7 PMM-011-COS-060-070 Update “ENJAZ” System and “Primavera P6”

Database
Procedure: ● Update “ENJAZ” system and “Primavera P6” database by the information
of the processed revised BOQ.
● Use only the information provided in the approved documents.
● Ensure that the update has been reflected in the NWC Finance
Department System.

Consulted:
NWC Project Manager
Informed:
NWC Project Manager
11.7 PMM-011-COS-070 Payments during Construction, Testing &

Commissioning and Handover & Closeout Stages
11.7.1 Objective
The objective of this process is to control all payments to contractor and supervision consultant
during Construction, Testing & Commissioning and Handover & Closeout Stages which
includes:
● Contractor advance payment
● Contractor current invoices
● Contractor final invoice
● Supervision Consultant current invoices
● Supervision Consultant final invoices
The main objective of this control is to pay only within the approved project budget.
11.7.2 Policies
1. The advance payment request shall be disapproved if it exceeds the limit of advance
payment that stated in NWC Financial Policy.
2. The advance payment shall not be approved unless the Contractor submits, along
with his request, a bank guarantee against the advance payment. The bank guarantee
must be issued, with VAT, equal to the value of advance amounts with expiry till end
of contract.
3. Also, the following supporting documents shall be submitted along with the advance
payment request:
i. Purchase Order.
ii. Proforma invoice (for payment).
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iii. Contract/agreement.
iv. Bank Guarantee.
v. Commercial Registration Certificate.
vi. Certificate of Subscription to Chamber of Commerce & Industry.
vii. Certificate of GOSI.
viii. Saudization Certificate.
ix. Certificate of Zakat & Income.
4. Paid advance payment shall be recovered at instalments of percent equal to (Advance
payment value to Contract Value) from all monthly invoices starting from first invoice
in the contract.
5. If the project went terminated for any reason, NWC Project Manager shall immediately
request to settle the advance payment.
6. Every current invoice application shall be submitted on monthly basis regardless the
amount of performed work on maximum the 7th days of every month. The invoice
shall cover the month works.
7. Every invoice shall be approved only if all works in the submitted the invoice are:
i. formally accepted by Supervision Consultant.
ii. do not have an open Quality NCR.
8. Contractor final invoice to be submitted only after the closure of all initial acceptance
snag list items.
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11.7.3 Flowchart
Figure 11-8 PMM-011-COS-070 Payments during Construction, Testing & Commissioning and
Handover & Closeout Stages Flowchart
11.7.4 Procedures
11.7.4.1 PMM-011-COS-070-010 Approve Supervision Consultant Invoice
Procedure: ● NWC Project Manager shall receive hardcopy of the Supervision

Consultant monthly current invoice and its supporting documents.
● If Supervision Consultant does not submit the current invoice maximum
the 7th of the month, NWC Project Manager shall send an urge letter to
the Supervision Consultant.
● NWC Project Manager shall within 7 days from invoice submission:
○ with Cluster Cost Control Section Head, he shall check the
submitted monthly current invoice and its supporting documents.
○ discuss with Supervision Consultant any discrepancies and receive
from him any required corrections.
○ review and approve the monthly current invoice considering:
- Verify the overall invoice format and calculations for accuracy
and compliance with the Contract’s terms and conditions.
- Verify the inclusion of any due deductions or penalties.
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- Verify the invoice items, prices, quantities are in conformity with

the BOQ included in the Contract Documents and the quantities
- Verify that all required deliverables have been inspected and
Representative.
- Verify that any insurances, bonds, securities and like are still
valid and in effect for the Works or Services
- Verify / Assess any back-charges, retentions, delay penalties or
other deductions to the Payment amount that the NWC is
entitled to withhold in accordance with the Agreement.
- Create a “Completion” / “Work Confirmation” Certificate in
- Send a copy the of all invoice documents to the Supervision
Consultant including a copy of the signed “Completion” / “Work
● Supervision Consultant shall upload the signed copy of the monthly
current invoice to NWC system within 1 day.
● The NWC Project Manager shall approve the uploaded monthly current
invoice 3 days.
● The Cluster Projects GM shall give final approval monthly current
invoice, then forward it to Finance Department within 3 days.
● The project manager shall update the progress and current invoice status
on ENJAZ system within 1 day.
completion as applicable using (PMF-011-COS-021 Final Invoice
Checklist). Final invoice shall reflect the total actual cost of construction
contract.
NWC Project Manager
Roles: Responsible:
Cluster Projects GM
Consulted:
Cluster Finance GM
Informed:
11.7.4.2 PMM-011-COS-070-020 Approve Contractor Invoices
Procedure: ● NWC Project Manager shall receive hardcopy of the Contractor monthly
current invoice and its supporting documents.
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● If Contractor does not submit the current invoice maximum the 7th of the
month, NWC Project Manager shall send an urge letter to the Contractor.
● The Contractor current invoice shall be reviewed as follows:
○ For Contractor current invoice (for NWC projects):
- Ensure the Contractor has attached:
· the HSE certificate using “00_BS01_FM_021.01 HSSE
Commitment Certificate for Invoicing”.
· the as built drawings and GIS information for works
invoiced two months earlier.
- The Supervision Consultant and NWC project manager shall
review and approve the monthly current invoice and its
supporting documents within maximum 7 days.
· Verify the overall invoice format and calculations for
accuracy and compliance with the Contract’s terms and
conditions.
· Verify the inclusion of any due deductions or penalties.
· Verify the invoice items, prices, quantities are in conformity
with the BOQ included in the Contract Documents and the
quantities are verified against actual installed units of Work
or Services completed in the period to which the
Application refers.
· Verify that all required deliverables have been inspected
and accepted to the Authorized Representative or
Department Representative.
· Verify that any insurances, bonds, securities and like are
still valid and in effect for the Works or Services.
· Verify / Assess any back-charges, retentions, delay
penalties or other deductions to the Payment amount that
the NWC is entitled to withhold in accordance with the
Agreement.
· Create a “Completion” / “Work Confirmation” Certificate in
· Send a copy the of all invoice documents to the Contractor
including a copy of the signed “Completion” / “Work
- Contractor shall upload the signed copy of the monthly current
invoice to NWC system within 1 day.
- The NWC Project Manager shall approve monthly current
invoice within 3 days.
- The Cluster Projects GM shall give final approval monthly
current invoice within 3 days, then forward it to Finance
Department.
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- The project manager shall update the progress and current

invoice status on ENJAZ system.
○ For Contractor current invoice (for MEWA projects):
- Ensure the Contractor has attached the as built drawings and
GIS information for works invoiced two months earlier.
- The Supervision Consultant shall review and approve the
monthly current invoice and its supporting documents within
maximum 7 days.
- The NWC project manager shall review and approve the
monthly current invoice within maximum 4 days.
- The Cluster Projects GM shall give final approval monthly
current invoice within 3 days, then forward it to Finance
Department.
- The project manager shall update the progress and current
invoice status on ENJAZ system.
completion using (PMF-011-COS-021 Final Invoice Checklist). Final
invoice shall reflect the total actual cost of construction contract.
● See (PMF-011-COS-024 Contractor Invoice Process Flow in
Roles: Responsible:
NWC Project Manager
Cluster Projects GM
Consulted:
Contractor
Cluster Finance GM
Informed:
11.7.4.3 PMM-011-COS-070-030 Submit Advance Payment Request
Procedure: ● Submit to NWC an advance payment request using (PMF-011-COS-027

Advance Payment Request) to be recovered from current invoices
● Attach supporting documents to the request.

Consulted:
NWC Project Manager
Cluster Projects GM
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11.7.4.4 PMM-011-COS-070-040 Approve Paying Advance Payment to Contractor at

Cluster
Procedure: ● If Contractor, using (PMF-011-COS-027 Advance Payment Request)

submits a request to be paid advance payment to be recovered from his
invoices and attaching to the supporting documents.
● The Supervision Consultant shall:
○ review and assess the Contractor request within 3 days.
○ provide recommendation for approving/disapproving the Contractor
request using the advance payment approval form (PMF-016-PRO-
028 Advance Payment Approval Form).
● NWC Project Manager shall:
○ review and assess the Contractor request.
○ ensure from Cluster Finance Department that financial liquidity to
pay this advance payment is available.
○ in consultancy with supervision consultant, create a technical report
justifying paying the advance payment to the Contractor.
○ approve/disapprove the Contractor request within 2 days using
advance payment approval form (PMF-016-PRO-028 Advance
Payment Approval Form).
● Cluster Projects GM shall approve/disapprove the advance payment
approval form (PMF-016-PRO-028 Advance Payment Approval Form)
within 2 days.
● Cluster Senior GM shall approve/disapprove the advance payment
within 2 days.
Roles: Responsible:
NWC Project Manager
Cluster Projects GM
Cluster Senior GM
Consulted:
Cluster Finance GM
Contractor
Informed: Scheduling & Control GM
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11.7.4.5 PMM-011-COS-070-050 Approve Paying Advance Payment to Contractor at

HQ
Procedure: ● Scheduling & Control GM shall approve/disapprove the advance

payment approval form (PMF-016-PRO-028 Advance Payment Approval
Form) within 2 days and forward it to Capital Projects & Technical
Services VP.
● Capital Projects & Technical Services VP shall approve/disapprove the
advance payment approval form (PMF-016-PRO-028 Advance Payment
Approval Form) within 2 days and forward it to the Authorized Person.
● Authorized Person shall approve/disapprove the advance payment
within 10 days.
● When the final approval been obtained, the Scheduling & Control GM
shall:
○ forward the approved request to Finance Department for
processing.
○ notify the Cluster Project GM to follow up that Contractor collects the
approved advance payment from Cluster Finance Department.
Roles: Responsible:
Authorized Person
Cluster Projects GM
Consulted:
Cluster Senior GM
NWC Project Manager
Informed:
Cluster Senior GM
Cluster Finance GM
Contractor
11.7.4.6 PMM-011-COS-070-060 Monitoring and Controlling Approved Advance
Payment
Procedure: ● When the advance payment gets approved, update the status on
(ENJAZ System) by the approval.
● When Contractor receives the advance payment, update (ENJAZ
System) accordingly
● Continuously, ensure the advance payment recovery in Contractor
submitted invoices (current and final).
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NWC Project Manager
Informed:
11.7.4.7 PMM-011-COS-070-070 Update “ENJAZ” System and “Primavera P6”
Database
Procedure: ● Update “ENJAZ” system and “Primavera P6” database by the information
of the processed:
○ advance payment
○ current invoice.
○ final invoice
● Use only the information provided in the approved documents.
● Check with Cluster Finance Dept. that the update has been reflected in
the NWC Finance System.

Consulted:
NWC Project Manager
Cluster Finance GM
Informed:
NWC Project Manager
11.8 PMM-011-COS-080 Monitor and Control Budget and Cashflow

11.8.1 Objective
The objective of this process is to monitor and control the project budget and cash flow during
Construction, Testing & Commissioning and Handover & Closeout Stages which includes to
adhere to contract cost conditions and planned cashflow.
11.8.2 Policies
1. A Project Cost forecast must be maintained up-to-date (minimum monthly update
basis) during the Construction and Handover phases, for reconciliation of Anticipated
Final Cost versus the project target budget.
2. The construction and handover schedules must be maintained in the “Primavera P6”
as integral parts of the project schedule, and project cashflow forecasts must be
produced from value of work done to-date and projected Schedule and cost to
completion.
3. The Project budget must only be changed if there is an Approved Variation (i.e. create
a new baseline in “Primavera P6”).
4. Only the budget portion allocated for the Construction, testing & commissioning and
Handover & Close-out stages must be spent from the end of Tender for Construction
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stage (contract award) up to end of Handover & Close-out stage (beginning liability
and operation period). This is known as the “Contract Budget”.
5. The construction and handover schedules must be updated weekly during the
Construction and Handover phases to show actual progress of the activities as a
draw-down of the “Contract Budget”.
11.8.3 Flowchart
Figure 11-9 PMM-011-COS-080 Monitor and Control Budget and Cashflow Flowchart
11.8.4 Procedures
11.8.4.1 PMM-011-COS-080-010 Develop Project Cost Metrics
Procedure: ● Monthly or when requested, Calculate project cost metrics:

○ Budget (actual to date, planned and forecast).
○ Budget balance value (approved project value - advance payment -
total of processed current invoices).
○ Cashflow (actual to date, planned and forecast).
○ Any other agreed metrics with NWC Project Manager and
Supervision Consultant.
● These metrics shall be monthly reported in the monthly progress reports.

NWC Project Manager
Consulted:
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11.8.4.2 PMM-011-COS-080-020 Review and Control Project Cost Metrics
Procedure: ● Review the project cost metrics which prepared by the Contractor:
○ Budget (actual to date, planned and forecast).
○ Budget balance value (approved project value - advance payment -
total of processed current invoices).
○ Cashflow (actual to date, planned and forecast).
○ Any other agreed metrics with NWC Project Manager and
Supervision Consultant.
● Identify any improper information and communicate with contractor to
correct them.
● Accept and send the project cost metrics to NWC Project Manager

NWC Project Manager
Consulted:
11.8.4.3 PMM-011-COS-080-030 Review Project Cost Metrics
Procedure: ● Review the project cost metrics which developed by the Contractor.
● Communicate with Supervision Consultant to correct any improper
information.
● Accept the Project Cost Metrics and direct to include them in Monthly
Progress Report and Executive Summary of Monthly Progress Report.

Contractor
Consulted:
Cost Control Section Head
Contractor
Informed:

The table below identifies the KPIs of Project Cost Management. The NWC Project Manager is
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Table 11-2 Project Cost Management KPIs

Detail Measurement
projects that in initial
Class 4 cost
1 planning stage and do Monthly 0 NA >0
estimates
not have Class 4 cost
estimate.
Class 3 cost Design & Build (EPC)
estimates in projects that without
2 Monthly 0 NA >0
Design & Build Class 3 cost estimate by
(EPC) projects the end of the initial
planning stage.
Design-Bid-Build
Class 3 cost
projects that without
3 estimates Design Monthly 0 NA >0
Class 3 cost estimate by
projects
completion of 30%
design package review.
Design-Bid-Build
Class 2 cost
projects that without
4 estimates Design Monthly 0 NA >0
Class 2 cost estimate by
projects
the end of the end of
design stage.

the number of ongoing
Untimely current
projects that NOT
invoice
5 submitted the monthly Monthly 0 1 >1
applications in a
current invoice within
month
the first 7 days of the
month.
Untimely current ongoing projects that
invoice NOT submitted the
6 Monthly 0 3 >3
applications up to monthly current invoice
date within the first 7 days of
the month.
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Detail Measurement
Not submitted
7 not submitted invoices Monthly 0 2 >2
invoices
of ongoing projects.
monthly current invoices
Time for that sent from cluster
processing the projects department to
8 Monthly 0 3 >3
submitted monthly Finance Department for
current invoice paying in more than 14
days from contractor
submission date.

Submission of first has the contractor
revised BOQ within submitted the first
9 Monthly Yes NA No
90 days from site revised BOQ within 90
handover date days from site handover
date.
Approved first ongoing construction
revised BOQ of projects in the cluster
construction or that did NOT have an
10 Monthly 0 2 >2
EPC projects per approved first revised
month in the BOQ within 14 days
cluster from BOQ submission
date.
“Estimate at projects that its
Completion” Cost "Estimate at
11 compared to the Completion" is out the Monthly 0 1 >1
original design range -20% to +10% of
contract value. the original design
contract value.
“Estimate at
projects that its
Completion” Cost
"Estimate at
compared to the
12 Completion" is out the Monthly 0 1 >1
original
range -20% to +10% of
construction
the original construction
contract value.
contract value.
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11.10 Attachments
COS Project Cost Management).
Table 11-3 Project Cost Management forms, templates and guidelines
Document No. Title
PMF-011-COS-001 Cost Estimating Guidelines
PMF-011-COS-002 Cost Budgeting, Trending and Forecast Guidelines
PMF-011-COS-004 CAPEX Forms
PMF-011-COS-006 Cost Database Guidance Notes
PMF-011-COS-007 Plant Project BOQ Preamble Example
PMF-011-COS-019 Monthly Cost Report Input Forms
PMF-011-COS-020 Monthly Cluster Cost Report Template
PMF-011-COS-021 Final Invoice Checklist
PMF-011-COS-022 Cost Control Reporting Guidelines
PMF-011-COS-023 Construction Process Flow in Governance Document
PMF-011-COS-024 Contractor Invoice Process Flow in Governance Document
PMF-011-COS-025 Analysis of New BoQ Items Cost
PMF-011-COS-026 Revised BoQ Form
PMF-011-COS-027 Advance Payment Request
PMF-011-COS-028 Advance Payment Approval Form
PMF-011-COS-029 Revised BOQ Approval Form
PMF-010-SCH-014 Monthly Project Status Update Card
PMF-010-SCH-015 Report of Comparison between Project Card and Enjaz System
PMF-010-SCH-016 Project Progress Revision Card
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Section 12 - Project Quality Management
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History Page

12/01
● The process “PMM-012-QUA-010 Plan Project Quality Management” is elaborated.
Change ● The process “PMM-012-QUA-020 Perform Quality Assurance” is revised.
Description
● The process “PMM-012-QUA-030 Perform Quality Control” is revised.
06/02
This version is developed as an update to the latest version (v4) of the “Project Quality
Management” section in PMM which developed by Faithful + Gould. The following are
the changes:
● Adding procedures for submission and review of method statement and
Inspection and test plan (ITP).
● Modify the naming of inspection schedule to Inspection and test plan (ITP).
Change ● Adding Audit and Surveillance guidelines, forms and templates from Mashroat
Description White Book.
● Adding guidelines and form for material receiving and inspection.
● Updating forms and templates.
● Updating flowcharts.
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12 Project Quality Management

The subject of this particular section of the Project Management Manual (PMM) is Project Quality
Management.
The high-level process map for Project Quality Management is illustrated below in Figure 12-1:
Figure 12-1 High-Level Process Map for Project Quality Management
12.1 PMM-012-QUA-010 Plan Project Quality Management

12.1.1 Objective
The objective of this process is to proactively plan for establishing an effective regime on every
NWC capital project (including design and construction) to ensure that all technical
requirements of the project are met in full, to the satisfaction of NWC.
Also, this process targets to that, the quality planning responsibility through the project lifecycle
passes from the NWC Project Manager, who sets out the strategic quality requirements at
project level, to the Design Consultant and Contractor, who develop and deploy tactical plans
(Design Quality Management Plan and Construction Quality Management Plan) to ensure that
the strategic quality requirements are met in full.
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12.1.2 Policies
1. NWC Capital Projects & Technical Services fully supports the high standards and
quality policy of the business. There are no exceptional circumstances where the
quality policy may be ignored at the level of a Cluster program or at individual project
level.
2. Prevention of quality issues is better than cure, all the time and every time.
3. Each project must have a separate section for quality management in the Project
4. The approved Project Management Plan, including the Quality Management Plan
5. Second Parties must create their own Quality Management Plan sections for the
project as part of their contract mobilization work based on ISO9001 QMS and
ISO10005 Quality Planning Guidelines. These Quality Management Plan Sections
must be approved by NWC during mobilization period.
6. Second Parties Quality Management Plan Sections must be supported by competent
material testing and works inspection regime, which must be subjected to periodic
inspections and audits by NWC.
7. The Quality Management Plans in PMPs of NWC, Design and Construction must be
8. Planning for quality must be specific and unique to the location, activities and
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12.1.3 Flowchart
Figure 12-2 PMM-012-QUA-010 Plan Project Quality Management Flowchart
12.1.4 Procedures
12.1.4.1 PMM-012-QUA-010-010 Develop the Quality Management Plan Section of the

includes a dedicated section for Quality management.
● The template includes a dedicated section for quality management which
shall be developed considering the quality requirements in ISO 9001
QMS.
● Update the Project Quality Section throughout the lifecycle with the
Roles: Responsible:
NWC Project Manager
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Cluster Projects GM
Consulted:
Cluster PMO Manager
Informed:
Cluster Projects GM
Guidelines: ● The Quality Management Plan Section of the Project Management Plan
shall address but not limited to the following:
○ Project quality requirements including interpretations and
expectations
○ Vision of high quality performance including key performance
indicator (KPIs) metrics that reflect quality performance
○ measurement methods, frequency of measurement, communication
methods, corrective action responsibility
○ Customer satisfaction
○ Quality audits
○ Non-conformities
○ Repeated violations
○ Management reviews
○ Document and records control
○ Preventive action
○ Corrective action
12.1.4.2 PMM-012-QUA-010-020 Approve the Quality Management Plan Section of

Procedure: ● Review and Approve the Quality Management Plan Section of Project
Management Plan.
satisfactorily.
● Approve the submitted Project Quality Management Plan Section.
Roles: Responsible: Cluster PMO Manager

Consulted:
NWC Project Manager
Cluster Projects GM
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Informed:
NWC Project Manager
Cluster Projects GM
12.1.4.3 PMM-012-QUA-010-030 Ensure Quality Requirements and Technical
own Quality Management Plan and must submit it during the contractual
proposals includes Quality assessment criteria, which addresses:

Consulted:
12.1.4.4 PMM-012-QUA-010-040 Develop Project Quality Management Plan Section in

Procedure: ● Develop Project Quality Management Plan Section in the Project Design
Management Plan.
● Ensure that the Project Quality Management Plan Section in the Project
Design Management Plan is in alignment with the Project Quality
● The Design Quality Management Plan shall strictly be in alignment with
(PMF-012-QUA-121 Quality Requirements for Construction Contractors
& Design Consultants) which the Design Consultant is responsible to
fulfill during the stages from construction to closeout.
Director about the development of the Project Quality Management Plan
Section.
● Include the Project Quality Management Plan Section in the Project
Management Plan.
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NWC Project Manager
Consulted:
12.1.4.5 PMM-012-QUA-010-060 Ensure Quality Requirements and Technical

Quality Management Plan and must submit it during the contractual
proposals includes Quality assessment criteria, which addresses:

Consulted:
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12.1.4.1 PMM-012-QUA-010-080 Develop the Construction Quality Management Plan

Section
Procedure: ● Develop Project Quality Management Plan Section in the Project

● Ensure that the Project Quality Management Plan Section in the Project
Design Management Plan is in alignment with the Project Quality
● The Construction Quality Management Plan shall strictly be in alignment
with (PMF-012-QUA-121 Quality Requirements for Construction
Contractors & Design Consultants) which the Contractor is responsible
to fulfill during the stages from construction to closeout.
● Include in Construction Quality Management Plan coordination
procedures for inspection and audit with:
○ Notification actions
○ Inspection and audit formats
○ Inspection registers
the development of the Project Quality Management Plan Section.
● Include the Project Quality Management Plan Section in the Project

NWC Project Manager
Consulted:
12.2 PMM-012-QUA-020 Perform Quality Assurance

12.2.1 Objective
The objective of this process is to apply the previously-planned and approved quality-related
activities in a systematic manner, to ensure that the project employs all processes needed to
meet its quality requirements and obligations in full. The ultimate goal of performing quality
assurance to improve project processes and activities.
12.2.2 Policies
1. Assurance must be provided, through objective evidence, that the planned quality-
related activities and control measures have been properly integrated into the other
project activities, and that their execution has been effective and efficient.
2. Results of the quality-related activities and control measures should be analyzed and
evaluated on a regular basis and formally reported in the Contractor’s monthly project
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progress report, to the satisfaction of the Supervision Consultant and NWC Project
Manager.
3. Second Party Quality Management Plans must be supported by competent method
statements. Work activities by Second Parties must only be carried out if there are
associated HSE assurance documents in place, such as risk assessments, impact
assessments, construction safety guidelines, induction training records, tool box
training records and, most importantly, an approved NWC permit to carry out the
specific construction activities identified in the method statement. Results of quality
related activities and control measures shall be evaluated on a regular basis and
formally reported in the Contractor’s monthly quality report to the satisfaction of
Supervision Consultant and Cluster QA Section Head.
4. Method Statements must be specific and unique to the location, activities and
characteristics of the project. They must not be generic or wholesale copy-and-paste
from previous projects, else they will be rejected.
5. All Quality inspection test plans and associated assurance records are subject to
periodic internal audits by NWC.
6. There must be provision for training of workers in the importance of method
statements and how method statements must be followed at all times for all activities,
without exception.
7. The NWC Project Manager shall ensure that all Project Team members have been
trained to the project Quality procedures according to training procedures included in
the Construction Quality Management Plan.
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12.2.3 Flowchart
Figure 12-3 PMM-012-QUA-020 Perform Quality Assurance Flowchart
12.2.4 Procedures
12.2.4.1 PMM-012-QUA-020-010 Carry Out the Quality-Related Internal Design
Reviews
Procedure: ● Carry out a quality-related internal design review before each package
submission for design review.
● Prior to formal submission to NWC, each quality-related internal design
review report must first be discussed between the Design Consultant, the
Cluster Technical Services Director and Cluster Value Engineering
Specialist as appropriate.
● Formally report on each completed internal design review.
● Each quality-related internal design review report must be submitted as
an integral part of each design review package with the appropriate
design deliverables, such as drawings, calculations, etc.
● Quality -related internal design reviews are themselves considered as
deliverables by NWC.
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Consulted:
NWC Project Manager
Informed:
12.2.4.2 PMM-012-QUA-020-020 Review the Quality-Related Internal Design Review
Report
Procedure: ● Quality-related internal design review reports must be approved with the
associated design package (drawings, calculations, etc.)
● DO NOT approve design package separately from the associated
quality-related internal design review report(s).
● The review of each design deliverable package, including the associated
quality-related internal design review report, is led by the Cluster
Technical Services Director, assisted by the Cluster QA Section Head,
as part of the review and approval activity.
● Include all internal design review report’s comments and suggestions for
improvements in the design review package response.
Roles: Responsible:
NWC Project Manager
Consulted:
Informed:
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12.2.4.3 PMM-012-QUA-020-030 Develop and Submit the Method Statement
Procedure: ● The method statement shall include clearly identified steps, which have
been introduced in order to ensure quality and safety of workmanship.
● Use the Method Statement format provided by NWC (PMF-012-QUA-
004 Method Statement (General)).
● This is developed initially from the quality perspective (i.e. describe what
work is to be done, to what standards of workmanship, etc.)
○ How does the Contractor intend to carry out the work?
○ What resources does he intend to deploy?
○ What is the timescale for completion?
○ Confirm that any external Permits, or other legal requirements, have
been obtained.
○ What quality control measures Contractor proposes to undertake
and at what stages of the construction works these will be
implemented, using the Inspection and Testing Plan (ITP)
○ The quality forms provided by NWC. If a form is not covered in NWC
forms set Contractor shall develop the form and obtain NWC
approval.
○ Are any material approvals needed and/or testing that will be carried
out?
○ Risk assessment.
○ Any other relevant information concerning the execution of the
proposed works.
● Submit the method statement for approval.

Consulted:
Informed:
12.2.4.4 PMM-012-QUA-020-040 Approve the Submitted Method Statement
Procedure: ● The Method Statement must be approved with the associated

attachments.
● The review of each Method Statement, including the associated
attachments, is performed by the Supervision Consultant.
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NWC Project Manager

Consulted:
12.2.4.5 PMM-012-QUA-020-050 Develop and Submit the Inspection and Testing Plan
(ITP)
Procedure: ● Use the ITP templates provided by NWC.

● The Contractor may add additional measures, where required, to the
existing ITP.
● If the proposed work is not covered by an existing ITP, the Contractor
must develop and submit his own ITP following the same format,
terminology and general level of detail contained in the existing forms.
● Minimum information that needs to be included in the ITP:
○ Companies’ logo.
○ Unique number of ITP.
○ Revision number.
○ Date.
○ Name and signature of the persons who prepared and approved the
ITP.
○ Description/list of activities in sequence of processes to be
performed.
○ Items or stages that will be checked and inspected.
○ Type of inspection or method of examination.
○ Frequency of inspection.
○ Acceptance criteria.
○ Inspection involvement of parties (hold point, witness point, etc.)
○ Deliverables documentation and reports required.
● Use the Project Quality Register (PMF-012-QUA-007 Quality
Observation Records Register (General)) as an input as this includes
quality-related observations already registered from previous method
statements and ITPs.
● The Contractor must, as a minimum, implement the quality control
measures listed in the relevant work related ITP.
● The activities covered in a Method Statement may contain more than one
ITP.
● Contractor shall develop a separate inspection and test plan for each
discipline, equipment and type of work.
● Submit the ITP for approval.
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Consulted:
12.2.4.6 PMM-012-QUA-020-060 Approve the Submitted ITP
Procedure: ● The ITP must be approved with the associated attachments and quality
forms.
● The review of each ITP, including the associated attachments, is
performed by the Supervision Consultant.

NWC Project Manager
Consulted:
12.2.4.7 PMM-012-QUA-020-065 Develop the Monthly Quality KPIs Follow Up Matrix
Procedure: ● Cluster QA Section Head shall collect all required data for the monthly
Quality KPIs Follow Up Matrix.
● Cluster QA Section Head shall create the Quality KPIs Follow Up Matrix
using (PMF-012-QUA-116 Monthly Quality KPIs Follow Up Matrix.)
● Distribute the Matrix to Cluster PMO Managers, NWC Project Managers
and Quality Assurance Director.

Cluster PMO Managers
Informed:
NWC Project Managers
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12.2.4.8 PMM-012-QUA-020-070 Carry out Quality Periodic Inspections, Surveillances

and Audits
Procedure: ● The Cluster QA Section Head is required to carry out periodic

inspections, surveillance and audits at the construction site on the
Contractor and Supervision Consultant.
● Use the Quality Inspection/Audit Checklist (PMF-012-QUA-005
Construction Internal Audit Checklist (General)) to raise quality-related
observations in a formal manner.
● Such visits also serve as training opportunities for Second Party staff,
whereby the Cluster QA Section Head will discuss and give informal
guidance on his observations and any questions raised during the visit.
This is an important dimension of collaborative working and of the Cluster
QA Section Head role.
● For Quality audits follow the following steps:
○ Develop Schedule for audits.
○ For next audit, determine audit purpose and scope.
○ Send audit notification and plan to the auditee.
○ Conduct a pre-audit meeting with the auditee to introduce the audit
purpose, scope and process.
○ Conduct the audit using the audit checklists.
○ Conduct a Post-Audit Closing Meeting.
○ Prepare and distribute audit report complete with Corrective Action
Notices (CANs) / Non Conformance Reports (NCR).
○ Verify CANs / NCRs
○ Close the audit.
● For Quality Surveillance follow following steps:
○ Determine surveillance scope.
○ Send surveillance notification to the auditee.
○ Conduct a brief post-surveillance meeting with the auditee Project
Manager to provide an overview of the Surveillance process.
○ Conduct the surveillance using the checklists.
○ Prepare and distribute surveillance report complete with
CANs/NCRs
○ Verify CANs/NCRs.
○ Close the surveillance.
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Consulted:
Contractor
NWC Project Manager
Informed:
Contractor
12.2.4.9 PMM-012-QUA-020-080 Capture Lessons Learned on Project Regarding
Quality Management
Procedure: ● Review quality-related issues and document to identify lessons learned.

● The lessons learned may include the following:
○ Quality-related performance of the Design Consultant.
○ Quality-related performance of the Supervision Consultant
○ Quality-related performance of the Contractor.
○ Quality-related performance of NWC staff.
○ Quality issues relating to materials, tools and construction
techniques.
○ Improvements to quality-related documents and processes in the
Project Management System, such as guidelines, formats, etc.
● Individual staff appraisals and debriefing must take place for project team
members. Quality-related performance and learning opportunities should
be considered as part of this procedure.
● The quality related lessons learned shall be documented and registered
in the (PMF-007-INT-020 Lessons Learned Register). Refer to (PMM-
007-INT-040 Manage Project Knowledge).

Consulted:
Informed:
12.3 PMM-012-QUA-030 Perform Quality Control

12.3.1 Objective
The objective of this process is to apply the specific method statement steps, which were
previously planned and documented in permit to work in order to ensure the product
compliance to quality requirements. The control process must have a feedback element, to
identify any unsatisfactory performance of the steps and to eliminate their root causes, which
may include failures in the associated planning and assurance activities. The ultimate goal of
performing quality control is to ensure project deliverables are conformed to the quality
standards.
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12.3.2 Policies
1. Construction activities in the approved permit to work must be followed at all times,
without exception.
2. NWC reserves the right to stop work by any party on the grounds of unsatisfactory
Quality management performance based on the NWC Project Management Plan and
the supporting project Quality register as criteria for satisfactory performance.
Stopping shall be applied only through formal notice.
3. Stopped works be resumed only upon approval by NWC of appropriate corrective and
preventive actions proposed by the party and accepted by NWC.
4. Any delays or additional costs incurred by the party due to their proven unsatisfactory
Quality management performance will not be accepted as grounds for a claim and
may be counter-claimed (i.e. penalized) by NWC of there is consequential loss as a
result.
5. Prevention is better than cure! Quality is not inspected-in after completion. Rather,
effort must be expended in identifying potential quality defects and eradicating their
root causes. This applies to process defects as well as to product defects.
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12.3.3 Flowchart
Figure 12-4 PMM-012-QUA-030 Perform Quality Control Flowchart
12.3.4 Procedures
12.3.4.1 PMM-012-QUA-030-010 Review the Compliance of Design Packages to
Design Quality Requirements
Procedure: ● Review the Compliance of Submitted Design Packages to design quality

requirements.
● Review the implementation of comments provided on previous design
package.
● Any incomplete or unsatisfactory observations must be recorded using
the (PMF-012-QUA-006 Quality Observation Record (General)).
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Roles: Responsible:
Design Consultant
Consulted:
Design Consultant
Informed:
NWC Project Manager
12.3.4.2 PMM-012-QUA-030-020 Address Quality-Related Issues in Technical
Reviews and Regular Design Progress Meetings
Procedure: ● Quality must be an agenda item in all technical reviews and regular
progress meetings, as well as regular progress reports by the Design
Consultant.
● Address quality issues in the Technical Review Reports.
● For recording of meetings, use (PMF-014-COM-022 Weekly Meeting
Minutes) and clearly identify any quality-related actions.
● The approach must be collaborative between departments and parties,
and must consider the whole life of the asset, not just its construction
phase.
Roles: Responsible:
Design Consultant
NWC Project Manager
Consulted:
NWC Project Manager
Informed:
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12.3.4.3 PMM-012-QUA-030-030 Carry Out Root Cause Analysis for Design Quality
Observations
Procedure: ● Quality Observation Record forms must be followed-up by thorough root

cause analysis, leading towards development of robust corrective and
preventive actions.
● Root causes during design can lie within several areas but not limited to:
○ Incomplete design work.
○ Inadequate design work.
○ Poorly-defined requirements.
○ Legislation changes.
○ Changes to other projects in the group.
● Use the “Root Cause Analysis” section of the Quality Observation Form
(PMF-012-QUA-006 Quality Observation Record (General)) to document
the outcomes of the analysis exercise.

NWC Project Manager
Informed:
12.3.4.4 PMM-012-QUA-030-040 Define Design Corrective and Preventive Actions
Procedure: ● Design Consultant shall define the corrective and preventive actions for
the following:
○ Correction of the quality observations.
○ Correction of Non-Conformities.
○ Prevention of recurrence (e.g. a change to the design process itself).
● Use the Corrective and Preventive Actions section of the Quality
Observation Form (PMF-012-QUA-006 Quality Observation Record
(General)) or NCR Form (PMF-014-COM-013 Non Conformance Report
NCR) to document the defined actions.
● Each root cause must be adequately treated by a defined mitigation
through correction and/or prevention.

Consulted:
NWC Project Manager
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NWC Project Manager

Informed:
12.3.4.5 PMM-012-QUA-030-050 Supervise Implementation of Approved Method
Statements by ITPs
Procedure: ● Oversee that the Contractor carries out the construction activities in
accordance with the approved method statements.
● Ensure that the Contractor has carried out briefings and toolbox talks
associated with the work and has clearly used the approved permit to
work.
● Observe that the briefed staff are the actual staff who perform the work.
● Using the related approved method statements and approved ITPs,
perform:
○ material inspection and testing.
○ work inspection.
○ equipment factory inspections and tests in collaboration with NWC
Project Manager, Manufacturers and Contractor.
● Use (PMF-012-QUA-118 Quality Control Procedures (General)) to
manage material and work inspections via MIRs and WIRs.
● Rejected items shall be re-inspected before proceeding to next activity.

Consulted:
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Guidelines: ● Construction Material

○ Materials Receipt: Prior to the start of construction, the Supervision
Consultant shall verify that the Contractor has, as a part of his
approved Construction Quality Management Plan, a method
statements, procedures, and the necessary forms for the receipt,
handling and storage of materials.
○ Materials Inspection: After material is received and delivered on site,
the Supervision Consultant shall inspect materials to confirm
compliance with the approved Material Submittal. A Materials
Inspection Request form (PMF-012-QUA-012 Material Inspection
Request (General)) shall be used.
● Construction Verification (Inspections)
○ Where the ITP defines Witness or Hold Point inspections, the
Contractor shall prepare and submit a Work Inspection Request
(WIR) form (PMF-012-QUA-013 Work Inspection Request
(General)).
○ Supervision Consultant Inspection shall take place after the
Contractor’s internal inspection has been completed. The Contractor
should only submit the WIR after he has undertaken his own initial
successful inspection
○ If required in the approved ITP, the Supervision Consultant shall
coordinate for an independent testing agency from the qualified list
of 3rd party inspection and testing companies or the NWC Lab to
participate in inspection, sampling, or testing.
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12.3.4.6 PMM-012-QUA-030-060 Monitor Effectiveness of the Method Statement and

ITP
Procedure: ● Through regular observation of the conduct of construction activities, the

Supervision Consultant must keep under review the permit to work,
including the specific method statement and ITP steps
○ Are the steps adequate?
○ Have some steps been missed from the original documentation?
○ Are the steps being performed effectively and efficiently?
○ Are any steps causing unforeseen safety hazards and/or
environmental aspects?
○ Is there a need for more/refresh briefings and toolbox talks,
especially if the permit has been open for some considerable length
of time?
● Use (PMF-012-QUA-006 Quality Observation Record (General)) to
document any observed issues, using the example questions listed
above as a guide.
● Use the NCR form to document any Non-Conformity (PMF-014-COM-
013 Non Conformance Report NCR).
● The NCR Process shall be as follows:
○ Identify nonconformity and issue the NCR (any project team
member).
○ Issue the NCR (Consultant Project Manager).
○ Identify root cause and propose the corrective action (by
Contractor).
○ Review and approve the proposed corrective action (by Supervision
Consultant).
○ Implement the approved corrective action (by Contractor).
○ Verify implementation and close NCR (by Supervision Consultant,
NWC Project Manager and Cluster QA Section Head).
● Supporting information must be routinely gathered, to assist the objective
measurement of quality performance:
○ No. of material rejections.
○ No. of failed inspections.
○ No. of non-conformances.
○ Date and topic/content of toolbox talks and briefings related to
permits (i.e. method statements, forms and quality guidelines).
○ Personnel induction and training records relevant to the site(s) of
work.
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Consulted:
Contractor
12.3.4.7 PMM-012-QUA-030-070 Carry Out Root Cause Analysis for Construction

Quality Observations and Non-Conformities
Procedure: ● Quality Observation Record forms and NCR forms must be followed-up
by thorough root cause analysis, leading towards development of robust
corrective and preventive actions
● Root causes during construction can lie within several areas but not
limited to:
○ Incomplete permit to work.
○ Inadequate permit to work.
○ Poor or low level supervision.
○ Staff changes.
○ Poor management of tools and materials.
○ Improper design.
● Use the “Root Cause Analysis” section of the Quality Observation and
NCR Forms to document the outcomes of the analysis exercise.

Consulted:
NWC Project Manager
Informed:
12.3.4.8 PMM-012-QUA-030-080 Address Quality-Related Issues in Regular Site
Meetings
Procedure: ● “Quality” must be an agenda item in all regular site meetings, as well as
regular progress reports by the Contractor.
● Quality Status for Project should be evaluated as per Quality KPIs in
(PMM-012-QUA-030-007 Quality Status of Project).
● For recording of meetings, use to clearly identify any quality-related
actions.
phase.
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Roles: Responsible:
Contractor
NWC Project Manager
Consulted:
NWC Project Manager
Informed:
12.3.4.9 PMM-012-QUA-030-090 Define Construction Corrective and Preventive
Actions
Procedure: ● Actions must be defined for the following:

○ Correction of the quality observations.
○ Correction of Non-Conformities.
○ Prevention of recurrence (e.g. a change to the Construction process
itself).
● Use the “Corrective and Preventive Action” section of the Quality
Observation and NCR Forms in order to document the defined actions
● Each root cause must be adequately treated by a defined mitigation
through correction and/or prevention.

Consulted:
NWC Project Manager
NWC Project Manager
Informed:

The table below identifies the KPIs of Project Quality Management. The NWC Project Manager is
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Table 12-1 Project Quality Management KPIs

Detail Measurement
Submission of
10 days > 10 days
Submission of Construction Quality
withing after after
Construction Management Plan in the
1 Monthly mobilizati mobilizati mobilizati
Quality project during the
on period on period on period
Management Plan project mobilization
end end
period.
2 Open quality NCRs open quality NCRs in Monthly 0 1 >1
the project.

Time to agree on
the average of calendar
proper proposed
days to agree on
3 corrective and Monthly 7 14 14
proposed corrective and
preventive actions
preventive actions in the
by contractor
project.

Time to execute
the average of calendar
the agreed
days to perform the
4 corrective and Monthly 14 30 30
agreed corrective and
preventive actions
preventive actions by
by Contractor
Contractor in the project.
Overdue Year-to-date number of

5 responses to overdue responses to Monthly 0 1 >1
submittals submittals.
date number of rejected
Rejected Work
WIRs in a project to the
6 Inspection Monthly 10% 25% > 25%
year-to-date total of
Requests (WIR)
submitted WIRs in the
project.
date number of rejected
Rejected Material
MIRs in a project to the
7 Inspection Monthly 10% 25% > 25%
year-to-date total of
Requests (MIR)
submitted MIRs in the
project.
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Detail Measurement
date number of failed
Failed Tests
tests in a project to the
8 (excluding welding Monthly 10% 25% > 25%
year-to-date total of the
tests).
performed tests in the
project.
date number of failed
welding tests in a project
Failed Welding
9 to the year-to-date total Monthly 5% 6% > 6%
Tests
of the performed
welding tests in the
project.

the total points of the
KPI No. 1,2, 5, 6, 7 and
Overall Project
10 8. Monthly 10 8 <8
Quality
Each KPI shall get 2 for
green, 1 for yellow and 0
for red.

the result of the
following formula:
20x (0.5 x %age of
Overall Cluster
11 projects in green + Monthly 10 8 <8
Quality
0.35 x %age of Projects
in Yellow +
0.15 x %age of Projects
in Red)
12.5 Attachments
QUA Project Quality Management).
Table 12-2 Project Quality Management forms, templates and guidelines
Document No. Title
PMF-012-QUA-004 Method Statement (General)
PMF-012-QUA-005 Construction Internal Audit Checklist (General)
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Document No. Title
PMF-012-QUA-006 Quality Observation Record (General)
PMF-012-QUA-007 Quality Observation Records Register (General)
PMF-012-QUA-010 Quality Guideline for Construction Sites (General)
PMF-012-QUA-011 Material Approval Request (General)
PMF-012-QUA-012 Material Inspection Request MIR (General)
PMF-012-QUA-013 Work Inspection Request WIR (General)
PMF-012-QUA-017 Non Disruptive Method NDM Acceptance Checklist (All Pipelines)
PMF-012-QUA-018 Inspection of Valves and Meters (General)
PMF-012-QUA-019 Material Approval Log (General)
PMF-012-QUA-020 Quality Guidelines for Construction Sites (Asphalt)
PMF-012-QUA-021 Inspection Test Plan for Asphalt (Asphalt)
PMF-012-QUA-023 Sectional Acceptance Checklist for Asphalt (Asphalt)
PMF-012-QUA-024 Inspection Checklist for Asphalt Primer (Asphalt)
PMF-012-QUA-030 Quality Guidelines for Construction Sites (Concrete)
PMF-012-QUA-031 Inspection Test Plan for Reinforced Concrete (Concrete)
PMF-012-QUA-034 Sectional Acceptance Certificate for Reinforced Concrete (Concrete)
PMF-012-QUA-035 Leak Test for Concrete Structure (Concrete)
PMF-012-QUA-039 Sectional Acceptance Checklist for Mechanical Works (Concrete)
PMF-012-QUA-040 Quality Guidelines for Construction Sites (Water Mains Disinfection)
PMF-012-QUA-041 Inspection Checklist for Water Mains Disinfection (Water Mains

Disinfection)
PMF-012-QUA-042 Test Record of Water Mains Disinfection (Water Mains Disinfection)
PMF-012-QUA-043 Sectional Acceptance Certificate for Water Mains Disinfection (Water

Mains Disinfection)
PMF-012-QUA-050 Quality Guidelines for Construction Sites (Wastewater HC)
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Document No. Title
PMF-012-QUA-051 Inspection Test Plan for House Connections (Wastewater HC)
PMF-012-QUA-053 Record of Home Visits for House Connections (Wastewater HC)
PMF-012-QUA-054 Public Notice of Work for House Connections (Wastewater HC)
PMF-012-QUA-056 Sectional Acceptance Certificate for House Connections (Wastewater HC)
PMF-012-QUA-060 Quality Guidelines for Construction Sites (Manholes and Chambers)
PMF-012-QUA-061 Inspection Test Plan for Manholes and Chambers (Manholes and
Chambers)
PMF-012-QUA-062 Leak Test for Manholes and Chambers (Manholes and Chambers)
PMF-012-QUA-063 Sectional Acceptance Certificate for Manholes and Chambers (Manholes

and Chambers)
PMF-012-QUA-064 Inspection Checklist for Manholes Finishing Works (Manholes and

Chambers)
PMF-012-QUA-065 Inspection Checklist Clean Out (Manholes and Chambers)
PMF-012-QUA-066 Inspection Checklist for Inspection Chamber (Manholes and Chambers)
PMF-012-QUA-067 Sectional Acceptance Checklist for Manholes Structurally (Manholes and

Chambers)
PMF-012-QUA-068 Existing Manhole Handing Over (Manholes and Chambers)
PMF-012-QUA-070 Quality Guidelines for Construction Sites Wastewater Pipelines

(Wastewater Pipelines)
PMF-012-QUA-071 Inspection Test Plan for Wastewater Pipelines (Wastewater Pipelines)
PMF-012-QUA-072 Leak Test for Wastewater Pipelines (Wastewater Pipelines)
PMF-012-QUA-073 Sectional Acceptance Certificate for Wastewater Pipelines (Wastewater

Pipelines)
PMF-012-QUA-080 Quality Guidelines for Construction Sites (Water Mains, Pipelines and HC)
PMF-012-QUA-081 Inspection Test Plan for Water Mains (Water Mains, Pipelines and HC)
PMF-012-QUA-082 Leak Test for Water Mains (Water Mains, Pipelines and HC)
PMF-012-QUA-083 Sectional Acceptance Certificate for Water Mains Pipeline (Water Mains,
Pipelines and HC)
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Document No. Title
PMF-012-QUA-084 Inspection Checklist for Pipeline Setting Out (All Pipelines)
PMF-012-QUA-085 Inspection Checklist for Pipeline Excavation (All Pipelines)
PMF-012-QUA-086 Inspection Checklist for Pipeline Bedding and Around (All Pipelines)
PMF-012-QUA-087 Inspection Checklist for Pipeline Installation (All Pipelines)
PMF-012-QUA-088 Inspection Checklist for Pipeline Backfilling (All Pipelines)
PMF-012-QUA-089 Acceptance Checklist for Water Main Pipeline Sub-Base Backfilling

(Water Mains, Pipelines and HC)
PMF-012-QUA-090 Material Inspection Log (General)
PMF-012-QUA-091 Work Inspection Log (General)
PMF-012-QUA-092 Inspection Checklist for Sub-base - Base Aggregate (Asphalt)
PMF-012-QUA-093 Sectional Acceptance Checklist for Electrical and IC Works (Concrete)
PMF-012-QUA-094 Inspection Checklist for Structure Setting Out (Concrete)
PMF-012-QUA-095 Inspection Checklist for Structure Excavation (Concrete)
PMF-012-QUA-096 Inspection Checklist - Formwork for Plain Concrete (Concrete)
PMF-012-QUA-097 Inspection Checklist - Formwork for Reinforced Concrete (Concrete)
PMF-012-QUA-098 Inspection Checklist - Reinforcement for Concrete (Concrete)
PMF-012-QUA-099 Inspection Checklist - Post-casting Concrete (Concrete)
PMF-012-QUA-100 Quality Guideline for Construction Sites (Plants and Equipment)
PMF-012-QUA-104 Site Installation Inspection Request for Plant (Plants and Equipment)
PMF-012-QUA-105 Factory Witness Test (Plants and Equipment)
PMF-012-QUA-106 Pre Shipping Inspection Report (Plants and Equipment)
PMF-012-QUA-107 Delivery Inspection Report (Plants and Equipment)
PMF-012-QUA-112 Equipment Documents Handover (General)
PMF-012-QUA-113 NWC Material Approval Form (General)
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Document No. Title
PMF-012-QUA-114 Monthly Quality Report (General)
PMF-012-QUA-116 Monthly Quality KPIs Follow Up Matrix (General)
PMF-012-QUA-118 Quality Control Procedures (General)
PMF-012-QUA-119 Acceptance Checklist for Water House Connection (Water Mains,

Pipelines and HC)
PMF-012-QUA-121 Quality Requirements for Construction Contractors & Design Consultants
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Section 13 - Project Human Resource Management
Section 13 - Project Human Resource

Management
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History Page

12/01
● The process “PMM-013-HUM-010 Plan Project Human Resource” is converted from
a cross reference to detailed process.
● The process “PMM-013-HUM-020 Acquire the Project Team” is elaborated.
● The process “PMM-013-HUM-030 Develop the Project Team” is converted from a
Change cross reference to detailed process.
Description
● The process “PMM-013-HUM-035 Interview and Approve Second Party Project
Team Members” is added.
● The process “PMM-013-HUM-040 Manage the Project Team” is revised.
● The process “PMM-013-HUM-050 Close the Project Team” is revised.
06/02
This section is developed as an update to “Communication” section in first version the

Change
Description ● Update and simplify flowcharts.
● Updating responsibilities as per NWC organization chart.
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13 Project Human Resource Management

The subject of this particular section of the Project Management Manual (PMM) is Project Human
Resource Management.
The high-level process map for Project Human Resources Management is illustrated below in Figure
13-1:
Figure 13-1 High-Level Process Map for Project Human Resources Management
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13.1 PMM-013-HUM-010 Plan Project Human Resource Management

13.1.1 Objective
The objective of this process is to ensure the utilization of best available NWC staff with the
suitable qualifications and experience to work in the project to best achieve project objectives.
The selection to be based on the latest approved organization chart of HQ and clusters defines.
Also, to ensure that the second party staff are competent with the best suitable qualifications
and experience to perform the project activities and achieve the project objectives.
13.1.2 Policies
1. Each project must have a separate section for Human Resource management in the
Project Management Plan, created by the NWC Project Manager and used as the
guiding document for internal and external staff throughout the project.
2. The approved Project Management Plan, including the Human Resource
Management Plan section, must be included in the tender documents when NWC is
procuring Second Party services and products in support of project execution.
3. The Human Resource Management Section in Project Management Plan PMP must
consider and be in full alignment with the latest approved NWC Organizational
Structure.
4. A project team organization chart must be included in Human Resource Section in the
Human Resource Management Plans in PMPs of NWC, Design and Construction.
5. Second Parties Human Resource Management Plan Sections must include a clear
staffing plan in line with the project activities in the submitted project level 2 schedule.
It must be updated once the level 3 schedule gets approved.
6. The Human Resource Management Plans in PMPs of NWC, Design and Construction
must be kept up-to-date throughout the project life cycle.
7. Planning for Human Resource must be specific and unique to the location, activities
and characteristics of the project. It must not be generic or wholesale copy-and-paste
from previous projects, else it will be rejected and disciplinary actions to be taken.
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13.1.3 Flowchart
Figure 13-2 PMM-012-QUA-010 Plan Project Human Resource Management Flowchart
13.1.4 Procedures
13.1.4.1 PMM-013-HUM-010-010 Develop the Human Resource Management Plan
Section of the Project Management Plan

includes a dedicated section for Human Resource management.
● Update the Project Human Resource Section throughout the lifecycle
with the approved changed using procedure (PMM-007-INT-020-040
Update the Project Management Plan Sections Based on Approved
Variations).
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Cluster Projects GM
Consulted:
Cluster PMO Manager
Cluster PMO Manager
Informed:
Cluster Projects GM
13.1.4.1 PMM-013-HUM -010-020 Approve the Human Resource Management Plan
Section of Project Management Plan
Procedure: ● Review and Approve the Human Resource Management Plan Section of
satisfactorily.
● Approve the submitted Project Human Resource Management Plan
Section.

NWC Project Manager
Consulted:
Cluster PMO Manager
NWC Project Manager
Informed:
Cluster Projects GM
13.1.4.2 PMM-013-HUM-010-030 Ensure Human Resource Requirements and
Technical Evaluation are Included in the Design Tender Documents

includes a dedicated section for Human Resource management.
own Human Resource Management Plan and must submit it during the
Management Plan.
proposals includes Human Resource assessment criteria, which
addresses:
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Consulted:
13.1.4.3 PMM-013-HUM-010-040 Develop Project Human Resource Management

Plan Section in the Project Design Management Plan
Procedure: ● Develop Project Human Resource Management Plan Section in the

Project Design Management Plan.
● Ensure that the Project Human Resource Management Plan Section in
the Project Design Management Plan is in alignment with the Project
Human Resource Management Plan Section in the NWC Project
Management Plan.
Director about the development of the Project Human Resource
Management Plan Section.
● Include the Project Human Resource Management Plan Section in the
Project Design Management Plan to be approved as part of the Project

NWC Project Manager
Consulted:
13.1.4.4 PMM-013-HUM-010-050 Ensure Human Resource Requirements and

Technical Evaluation are Included in the Construction Tender Documents
Human Resource Management Plan and must submit it during the
Management Plan.
proposals includes Human Resource assessment criteria, which
addresses:
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Consulted:
13.1.4.1 PMM-013-HUM-010-060 Develop the Construction Human Resource

Management Plan Section
Procedure: ● Develop Project Human Resource Management Plan Section in the

Project Construction Management Plan.
● Ensure that the Project Human Resource Management Plan Section in
the Project Design Management Plan is in alignment with the Project
Human Resource Management Plan Section in the NWC Project
Management Plan.
the development of the Project Human Resource Management Plan
Section.
● Include the Project Human Resource Management Plan Section in the
Project Construction Management Plan to be approved as part of the

NWC Project Manager
Consulted:
13.2 PMM-013-HUM-020 Acquire NWC Project Team

13.2.1 Objective
The objective of this process is to ensure that named persons from the latest approved
organizational chart, are allocated to the individual project.
Within each Cluster office, there will be a “pool” of competent management resources from
which suitable candidates can be drawn down from. These will include the following:
● NWC Project Managers
● Technical Staff
● Project Team
13.2.2 Policies
1. The NWC Project Manager must be appointed early to manage the project lifecycle
from Initial Planning to Handover.
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2. The project team organization chart that included in Human Resource Section in the
Project Management Plan must be followed.
3. All positions in the Project Management Plan organization chart must be occupied
with suitable, competent staff in order to provide the NWC Project Manager with fill
project lifecycle support.
4. It is the responsibility of Line Managers to ensure that their subordinate staff is in
complete understanding of the described Project Team role, responsibilities,
competence requirements and cascaded objectives for the projects they are working
on.
5. A register of all project inductions and role-based training events must be retained
and continually be updated using (PMF-013-HUM-003 Induction and Training
Register).
6. If there is an NWC Project Manager change during a project execution, then there
must be a formally recorded handover from the outgoing Project Manager to the
incoming Project Manager. See (PMF-013-HUM-001 Project Manager Role Handover
Checklist).
13.2.3 Flowchart
Figure 13-3 PMM-013-HUM-020 Acquire the Project Team Flowchart
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13.2.4 Procedures
13.2.4.1 PMM-013-HUM-020-010 Assign NWC Project Manager
Procedure: ● Business Unit Construction Director shall review project scope and
requirements and propose a suitable NWC Project Manager to manage
the project.
● Considering the current workload of the proposed NWC Project
Manager, Business Unit Construction Director shall ensure that the NWC
Project Manager has suitable experience in the following areas:
○ Region regulations.
○ Working on project of similar estimated value.
○ Working on projects of similar complexity.
○ Experience of any specialist work required.
● Business Unit Construction Director shall discuss with Cluster Projects
GM the nomination and request for approval.
● Cluster Projects GM shall approve assigning the nominated NWC Project
Manager.
Roles: Responsible:
Cluster Projects GM
Consulted:
Cluster Capital Resource Manager
Human Capital GM
13.2.4.2 PMM-013-HUM-020-015 Carry out Formal Handover to the New Project

Manager
Procedure: ● For all changing NWC Project Manager, use (PMF-013-HUM-001 Project
Manager Role Handover Checklist) to carry out formal handover to the
new NWC Project Manager.
NWC Project Manager (outgoing)
Roles: Responsible:
NWC Project Manager (incoming)
Cluster Projects GM
Consulted:
Cluster PMO Manager
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13.2.4.3 PMM-013-HUM-020-020 Discuss and Identify Suitable Staff for the Project
from the Cluster Projects Team
Procedure: ● Review project scope and requirements and discuss with Cluster
Scheduling & Control Manager and Cluster Technical Services Director
in order to identify suitable staff within the required disciplines to assist
on the project.
● Ensure staff identified has suitable experience in the following areas
○ Experience on project of similar estimated value.
○ Experience on projects of similar complexity.
○ Experience of any specialist work required in project.
○ Experience within the specified field (Wastewater, Water, Plants).
○ Experience on particular Contract Type.
○ Knowledge in Working relationships with Supervision Consultant /
Contractor.
● When identifying staff, take into consideration current workload to ensure
they will have sufficient time available to dedicate to the Project
Roles: Responsible:
NWC Project Manager
Consulted:
13.2.4.4 PMM-013-HUM-020-030 Approve Suitability and Assignment of Identified Staff
Procedure: ● Ensure that the correct personnel have been identified and there are no
outstanding issues or concerns may prevent working in the project.
● Ensure all personnel identified have the required level of experience and
skills to allow for the successful implementation and completion of the
project.
● Review performance reviews if available from previous projects in order
to ascertain their suitability for the project.
● Review current workload and upcoming projects to ensure this project is
best suited to their skills.
● Approve the selected team.
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Consulted:
Informed:
NWC Project Manager
NWC Project Team
13.2.4.5 PMM-013-HUM-020-040 Capture Identified Staff
Procedure: ● Following approval from Cluster Projects GM, begin capturing the
acquired resources for the project.
● Ensure all identified positions have been resourced and confirmed.
● Provide the appropriate Job Profile to every team member.
Consulted: Cluster Scheduling Section Head
Informed: Business Unit Construction Director
13.3 PMM-013-HUM-030 Develop NWC Projects Team

13.3.1 Objective
The objective of this process is to ensure that Project Team members are competent on the
basis of appropriate education, training, skills and experience.
13.3.2 Policies
1. Project management system briefings must take place for raising staff awareness and
orientation training delivered as part of induction for new starters, transfer for
relocated, reassigned, promoted and demoted staff, rotation training amongst teams
to effectively share duties, and project assignment for staff joining an ongoing project
at any time during the project’s lifecycle.
2. All such briefings must be recorded using the training-related formats associated with
the Human Resource Policy and Procedure Manual, such as training attendance
sheet and training feedback record.
use of the system. Feedback must be gathered on system-based induction and
training. See the Feedback Form for System Induction and Training.
use of the system. Feedback must be gathered on PMM-based induction and training.
See the Feedback Form for System Induction and Training.
5. Project team members must have the necessary skills and attributes to allow them to
fulfill their roles and objectives on their given project to the required level and standard
necessary.
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6. To increase the chances or successful outcomes on projects and ensure satisfaction,

regular and continuous training, workshops, mentoring, etc. must be provided to allow
for individuals to increase and improve their capabilities.
7. Specific role-based training that attached to this section must be scheduled and
introduced to Project Management team at cluster or projects level.
8. All training must be organized in accordance with the Human Resources Procedure
Manual.
13.3.3 Flowchart
13.3.4 Procedures
13.3.4.1 PMM-013-HUM-030-010 Carry Out Induction and Objectives Briefing
Procedure: ● Perform Induction and objective briefing to every NWC Projects Team
member.
● Perform PMM induction to the NWC Projects Team member.
● Ensure that objectives are cascaded to individuals in the team.
● Register the performed inductions in (PMF-013-HUM-003 Induction and
Training Register).

Consulted:
Cluster Projects GM
Cluster PMO Manager
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13.3.4.2 PMM-013-HUM-030-020 Nominate Staff Members for Training
Procedure: ● NWC Project Manager shall monitor the performance of NWC Projects
Team members and identify the training needs for each member.
● Based on identified training needs, NWC Project Manager shall nominate
NWC Projects Team members for training.
● NWC Project Manager raise the nominations to Cluster PMO Manager.
● Cluster PMO Manager shall raise the nominations from all cluster
projects to Center of Excellence Director to arrange the suitable training
programs.
NWC Project Manager
Roles: Responsible:
Cluster PMO Manager
NWC Projects Team
Consulted:
Cluster PMO Manager
13.3.4.3 PMM-013-HUM-030-030 Provide Training to NWC Projects Team Members
Procedure: ● In collaboration with Human Capital department, Center of Excellence

Director shall schedule and provide the suitable training programs.
● At cluster level, specific role-based training material that is attached to
the Human Resource Management Section, can be used to provide in-
house training when needed. This training is to be introduced in
collaboration with the Center of Excellence department.

NWC Projects Team
Consulted:
Cluster PMO Manager
13.4 PMM-013-HUM-035 Interview and Approve Second Party Project Team

Members
13.4.1 Objective
The objective of this process is to ensure that Second Party Project Team Members are
competent on the basis of appropriate education, training, skills and experience.
13.4.2 Policies
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1. Second Party (Design Consultant / Supervision Consultant / Contractor) must submit

during the mobilization period a staffing plan which to be approved by the NWC
Project Manager.
2. The Key Project Team Members of second party must be interviewed and approved
by Cluster Projects Department.
3. The second party is not allowed to mobilize and utilize any team member that not
passed the NWC Interviews.
13.4.3 Flowchart
13.4.4 Procedures
13.4.4.1 PMM-013-HUM-035-010 Form Interview Working Group for Second Party
Project Team
Procedure: ● NWC Project Manager shall review the submitted staffing plan in
consultation with:
○ Cluster Technical Service for Design Consultant team.
○ Cluster Scheduling & Control for Supervision team.
○ Supervision Consultant for Contractor team.
● If NWC Project Manager approved the staffing plan, NWC Project
Manager shall create a working group forming decision and raise it to
Cluster Projects GM for approval. The request shall nominate
representatives from the following departments beside NWC Project
Manager:
○ Cluster Technical Services department.
○ Cluster Scheduling & Control department.
○ Cluster Environmental Compliance dept (in design projects and STP
Construction projects)
○ Cluster PMO department.
○ Directorate Construction department.
● Cluster Projects GM shall add to the interview working group any
additional suitable members as required.
● Cluster Projects GM shall approve the request and forming decision and
transmit them to NWC Project Manager for further actions.
NWC Project Manager
Roles: Responsible:
Cluster Projects GM
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NWC Project Manager
Consulted:
Cluster Technical Services director
Cluster Scheduling & Control manager
Cluster Environmental Compliance manager (for design
project)
Cluster PMO Manager
Directorate Construction Director
13.4.4.2 PMM-013-HUM-035-020 Conduct Interviews for Second Party Project Team
Procedure: ● Conduct a preparation meeting to at least:

○ Identify the second party key team members to be interviewed.
○ Identify required documents that the second party has to submit for
each role such as resume, academic degree, accreditation,
experience proves, etc.
○ establish assessment criteria for each role.
○ agree on interviews schedule based on the approved staffing plan.
○ any other arrangements for the interviews.
● Inform the second party by the agreed schedule.
● Conduct the interviews.
● After interviews, develop a report describing:
○ the applied assessment criteria.
○ the interview activities.
○ the interview results and recommendations.
● Raise the report to Cluster Projects GM for approval and approve the
second party staff.
Roles: Responsible: Interview Working Group
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13.4.4.3 PMM-013-HUM-035-030 Approve the Second Party Project Team
Procedure: ● Review and approve the report that raised from Interview Working
Group.
● Direct the second party to:
○ mobilize the accepted team members as per the staffing plan.
○ introduce other team members for interviews to fill the vacant
positions as per the staffing plan.
Consulted: Interview Working Group

Interview Working Group
Informed:
PMO GM
13.5 PMM-013-HUM-040 Manage the Project Team

Managing the Project Team is a process which aims to monitor team performance and
behavior, providing feedback, resolving any issues and coordinating changes necessary to
enhance project performance.
Routine engagement within each Cluster with the allocated Project team is required and is the
sole responsibility of the NWC Project Manager.
For project performance reporting, Cluster Technical Services director, Cluster Scheduling &
Control manager, Cluster Environmental Compliance manager and Cluster PMO Manager
shall conduct an internal monthly meeting review with the NWC Project Manager and all
relevant staff attached to the project. The aim of this meeting is to discuss the overall project
aspects and which may need to be escalated up to the higher management level.
13.6 PMM-013-HUM-050 Close the Project Team
13.6.1 Objective
The objective of this process is to finalize the participation of the project team and supporting
staff on the project and allows for the acknowledgement of the project team participation. It
also begins the process of identifying lessons to be learnt in order to benefit future projects,
avoids the potential of the project to “drift” without being formally closed.
It should be noted that this process deals specifically with the NWC Project Management Team
and it is the responsibility of the Contractor and Supervision Consultant to demobilize their own
teams. It is essential that the NWC Project Manager monitors closely the activities of the
Contractor and Supervision Consultant at this stage of a project to ensure that none of the
team are deliberately delaying the completion and closing out of the project.
13.6.2 Policies
1. At the closure of a project or project team members are moving to another Cluster or
to a new role during project execution, there must be a:
i. Leave debriefing
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ii. Performance appraisals

These two must be linked to the cascaded objectives and project KPIs. The appraisals
must follow the Human Resource department procedures.
2. Staff debriefing must be used in a constructive manner in order to learn lessons from
the performance of the project and to contribute towards improvement suggestions
for the project management framework.
13.6.3 Flowchart
Figure 13-4 PMM-013-HUM-050 Close the Project Team Flowchart
13.6.4 Procedures
13.6.4.1 PMM-013-HUM-050-010 Monitor Final Completion of Project Activities to
Ensure No Unnecessary Delays
Procedure: ● Monitor final completion of project activities and ensure that there is no
unnecessary delays or slippage.
● Continuously review Project Schedule to ensure milestones and dates
are being adhered to and maintained.
● Regularly review ongoing work with Project Team, Supervision
Consultant and Contractor to discuss any concerns or issues regarding
completion and closing of the project, to ensure timely closeout of all
activities.

Consulted:
Contractor
Informed:
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13.6.4.2 PMM-013-HUM-050-020 Carryout Project Related Performance Appraisals of

Team Members
Procedure: ● At the closure of the project, carryout performance appraisals for NWC
team members associated with the project.
● The appraisal should focus solely on their performance on the project.
● This should be completed in conjunction with Human Resources
Procedure Manual.
● Identify training needs based on performance appraisal/weak points.

NWC Project Team
Consulted:
Human Capital GM
NWC Project Team
Informed:
Human Capital GM
13.6.4.3 PMM-013-HUM-050-030 Inform Project Team Members and Cluster
Functional Managers About the Project Closure
Procedure: ● Following completion of stage gate, within (PMM-007-INT-070 Close the

Project), inform project team members and Cluster Functional Managers
that project is now closed.
● Formal communication should take place with reference to the above
with notice that no more time should be billed to or associated with this
project.

Informed:
Cluster Projects GM
The table below identifies the KPIs of Project Human Resource Management. The NWC Project
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Table 13-1 Project Human Resource Management KPIs

Detail Measurement
Commitment to date number of
staffing plan of the occupied work man-
1 Monthly 100% 90% < 90%
second party in a days to the year-to-date
project total project work man-
days in the project
Does the project have a

Project Manager
2 formal NWC Project Monthly Yes NA No
formal existence
Manager?
Year-to-date, have all

Second party team key team members of
members the second party been
3 Monthly Yes NA No
acceptance in a formally interviewed and
project accepted by NWC in the
project?
Year-to-date, have all

Second parties key team members of
team members the second parties been
4 Monthly Yes NA No
acceptance in a formally interviewed and
cluster accepted by NWC in the
project?
13.8 Attachments
HUM Project Human Resource Management).
Table 13-2 Project Human Resource Management forms, templates and guidelines
Document No. Title
PMF-013-HUM-001 Project Manager Role Handover Checklist
PMF-013-HUM-002 Project Team Members Register
PMF-013-HUM-003 Induction and Training Register
PML-013-HUM-001 Value Engineering Training - Ar
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Document No. Title
PML-013-HUM-002 Value Engineering Training - En
PML-013-HUM-003 Schedule Management Workshop
PML-013-HUM-004 Schedules Development and Review Guidelines Workshop
PML-013-HUM-005 Cost Control Training
PML-013-HUM-006 Risk Management Workshop
PML-013-HUM-007 Risk Management
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Section 14 - Project Communication Management
Section 14 - Project Communication

Management
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History Page

12/01
● The process “PMM-014-COM-010 Plan Project Communications” is elaborated.
● The process “PMM-014-COM-100 Distribute Non-Conformance Report (NCR)” is
revised.
● The process “PMM-005-GEN-090 Internal Communication” is revised and
Change transferred to Communication section as “PMM-014-COM-115 Cascade
Description Objectives”.
● The process “PMM-014-COM-120 Perform Design Performance Reporting” is
revised.
● The process “PMM-014-COM-130 Perform Construction Performance Reporting” is
revised.
06/02
This version is developed as an update to the latest version (v2) of the “Project
Communication Management” section in PMM which developed by Faithful + Gould.
The following are the changes:
● Dividing distribute information process into 10 processes according to
communication type, document, sender and receiver.
Change ● Dividing performance reporting process into 2 processes one for design
Description performance reporting and one for construction performance reporting.
● Adding internal-external stakeholder communication plan template.
● Updating responsibilities as per NWC Organization charts.
● Updating flowcharts for processes and procedures.
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14 Project Communication Management

The subject of this particular section of the Project Management Manual (PMM) is Project
Communication Management.
The high-level process map for Project Communication Management is illustrated below in Figure 14-
1:
Figure 14-1 High-Level Process Map for Project Communication Management
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14.1 PMM-014-COM-010 Plan Project Communications Management

14.1.1 Objective
The objective of this process is to proactively plan for how project communication shall be
conducted. This includes preparation standard templates and forms to be used during the life
cycle of the project and ensure that all communications are recorded for future reference.
The process also targets to assure the development of adequate provision for relevant project
documentation to the considered stakeholder throughout the duration of the project.
This process also targets to plan for reporting activities during project life cycle.
14.1.2 Policies
1. ECMS system shall be used to host the project management system documents and
records and is the primary channel of internal communication. Also, ECMS system is
used to disseminate project management documents such as information and/or
notices:
● New and updated procedure releases.
● New and updated supporting document releases (forms, templates,
guidelines, learning support materials).
● New and updated external requirements, such as legal requirements and
international standards.
● New and updated in-house technical specifications.
● Library record of internal and external audit reports.
● Library record of periodic management review meetings and project
management system review reports.
● Responses to PMM improvement requests and PMM user feedback.
● Online directory of the Project and Technical Dept. with contract details.
2. Each project must be allocated a unique Project ID.
3. The Project ID must be common between the components of the Enterprise Content
4. Communication records must be used during whole project life cycle in strict
communication and:
i. secure storage for hard-copies.
ii. secure uploading to ECMS for soft-copy.
5. All projects shall have a formally appointed person responsible for document control
(hard-copy and soft-copy) and shall be clearly stated in the Project Management Plan
(PMP). This also applies in second party’s project communication plan.
6. Records of projects shall be archived and retained for a duration as per identified in
process (PMM-006-GOV-060 Control of Project Management Documents).
7. Further retention or disposal of project archives at the end of the stipulated archival
period shall be formally instructed as per identified in process (PMM-006-GOV-060
Control of Project Management Documents).
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construction) including Communications Management Plan Section for the project.
These management plans must comply with the Communications management
requirements defined in the NWC Project Management Plan and must be approved
by NWC during mobilization period.
9. The Communications Management Plans in PMPs of NWC, Design and Construction
14.1.3 Flowchart
Figure 14-2 PMM-014-COM-010 Plan Project Communications Flowchart
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14.1.4 Procedures
14.1.4.1 PMM-014-COM-010-010 Develop the Communication Management Plan
Section of the Project Management Plan

includes a dedicated section for Communication management.
● Use (EPM-IT0-TP-000001 Project Information & Communications
Technology Plan Template) as a guideline to create NWC
Communication Management Plan.
● Update the Project Communication Section throughout the lifecycle with
the approved changed using procedure (PMM-007-INT-020-040 Update
the Project Management Plan Sections Based on Approved Variations).
Roles: Responsible:
NWC Project Manager
Cluster Projects GM
Consulted:
Informed:
Cluster Projects GM
14.1.4.2 PMM-014-COM-010-020 Approve the Communication Management Plan
Section of Project Management Plan
Procedure: ● Review and Approve the Communication Management Plan Section of

satisfactorily.
● Approve the submitted Project Communication Management Plan
Section.

Consulted:
NWC Project Manager
Cluster Projects GM
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Informed:
NWC Project Manager
Cluster Projects GM
14.1.4.3 PMM-014-COM-010-030 Ensure Communication Requirements and
Technical Evaluation are Included in the Design Tender Documents

includes a dedicated section for Communication management.
own Communication Management Plan and must submit it during the
Management Plan.
proposals includes Communication assessment criteria, which
addresses:

Consulted:
14.1.4.4 PMM-014-COM-010-040 Develop Project Communication Management Plan

Section in the Project Design Management Plan
Procedure: ● Develop Project Communication Management Plan Section in the

Project Design Management Plan.
● Ensure that the Project Communication Management Plan Section in the
Communication Management Plan Section in the NWC Project
Management Plan.
Director about the development of the Project Communication
Management Plan Section.
● Include the Project Communication Management Plan Section in the
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NWC Project Manager

Consulted:
14.1.4.5 PMM-014-COM-010-050 Ensure Communication Requirements and

Technical Evaluation are Included in the Construction Tender Documents
Communication Management Plan and must submit it during the
Management Plan.
proposals includes Communication assessment criteria, which
addresses:

Consulted:
14.1.4.6 PMM-014-COM-010-060 Develop the Construction Communication

Management Plan Section
Procedure: ● Develop Project Communication Management Plan Section in the

● Ensure that the Project Communication Management Plan Section in the
Communication Management Plan Section in the NWC Project
Management Plan.
the development of the Project Communication Management Plan
Section.
● Include the Project Communication Management Plan Section in the
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NWC Project Manager

Consulted:
14.2 PMM-014-COM-020 Distribute Confidential Correspondence from

Consultant/Contractor to NWC
14.2.1 Objective
The objective of this process is to control the distribution of project Confidential
Correspondence from Consultant/Contractor to NWC for prescribed purposes, such as
approval, review and consultation, in a timely manner to the relevant project stakeholders, and
to ensure that proper records are made of all such communications.
14.2.2 Policies
1. All project information must be communicated through Document Controller s, so that
it shall be recorded and retained by NWC.
2. All project information (correspondences, documents, drawings, etc.) shall include the
unique Project ID and the agreed project name.
3. All incoming project information (correspondences, documents, drawings, etc.) shall
be scanned, uploaded and registered in the Enterprise Content Management System
(ECMS).
4. All electronic source files of outgoing project information (correspondences,
documents, drawings, etc.) shall be stored in Enterprise Content Management
System (ECMS). Where such information bears an NWC authorization signature, the
signature-copy must be scanned, uploaded and registered accordingly.
5. The NWC Project Manager shall monitor the status of team member actions relating
to all incoming and outgoing project information.
6. The NWC Project Document Controller shall use the Enterprise Content Management
System (ECMS) in order to generate weekly status reports relating to project
information, such as: new information items during the week; closed information items
during the week; and overdue information items during the week.
7. The Enterprise Content Management System (ECMS) shall have the following
functionality:
● Auto Numbering
● Version Control
● Ability to capture Metadata
● Advance Search Features
● Workflow
● Transmittal
● User Access Control
● Security Level Control
● Electronic Review Markup
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● Report Visualization
8. Manual Transmittals Project correspondence shall:
● Use the mandated Project templates.
● Address the appropriate contact or group for the relevant organization.
● Use a unique reference number and issued date.
● Use a clear and concise subject line.
● Be authorized by the principal contact or designated authority.
9. The following document details shall be defined when register new documents to the
Enterprise Content Management System (ECMS):
● Project
● Document number
● Title
● Status
● Organization
● Discipline
● Document Type
● Date of registration
● Author of the document
10. The Electronic transmittal shall display these attributes:
● Transmittal number
● The transmittal issue date
● The recipients the transmittal was addressed to
● Reason for Issue
● Response Required Date
● Document attributes (Document Number, Revision, Title and Status)
● Comments/Instructions
11. When issuing the manual transmittal and documents via email the following
information shall be included:
● The reason for Issue should be noted i.e. Issued for Information, Issued for
Review, etc.
● The documents and the associated manual transmittal being issued will either
have a secure link to the transmittal package via the Enterprise Content
Management System (ECMS) or are electronically attached to the email.
● To reduce the cost of tracking the “acknowledgement” copies of transmittals,
consideration should be given to utilizing the “Read Receipt” function within
Microsoft Outlook.
● Documents issued externally are to be in PDF format.
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14.2.3 Flowchart
Figure 14-3 PMM-014-COM-020 Distribute Confidential Correspondence from Consultant/Contractor to
NWC Flowchart
14.2.4 Procedures
14.2.4.1 PMM-014-COM-020-010 Issue the Confidential Correspondence
Procedure: ● Prepare the documents and attachments which will be sent from
Consultant/Contractor to NWC.
● Indicate that the correspondence should be handled as confidential.
● Ensure the proper details are provided as follows:
○ Reference Number (which include Project ID)
○ Date
○ Subject
○ Recipient
○ Attachment (number of pages)
○ “Confidential” indicator to indicate the document is confidential.
● Send hard copy original correspondence to Contractor/Consultant
Project Manager for his review and signature.
● Scan the documents and upload to an Enterprise Content Management
System (ECMS) confidential folder.
● Copy the correspondence and place the copy (hard) in the
Contractor/Consultant filing system.
● Send the hard copy original correspondence to the NWC Project
Document Controller with extra cover page for the “Received” stamp.
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Roles: Responsible: Contractor/Consultant Project Manager
Accountable: Contractor/Consultant Project Manager
Consulted: NWC Project Document Controller
Informed: NWC Project Document Controller
14.2.4.2 PMM-014-COM-020-020 Receive the Confidential Correspondence
Procedure: ● Upon receiving, review the documents and check for:

○ Date
○ Subject
○ Recipient
○ Confidentiality
● Stamp the original and cover page with “Received”, date, time and sign.
● Give the stamped cover page to the carrier to return it to the
Contractor/Consultant for his filing.
● Stamp the document (front page) with distribution stamp and give the
documents to the NWC Project Manager.
Consulted: Contractor/Consultant Document Controller

Contractor/Consultant Document Controller
Informed:
NWC Project Manager
14.2.4.3 PMM-014-COM-020-030 Review the Confidential Correspondence from
Consultant/Contractor to NWC and Define Distribution for Information/Action
Procedure: ● Review the documents and note the confidentiality.

● Identify all the persons for distribution, if required, by filling in the
distribution stamp defining the required action.
● Give the Documents to NWC Project Document Controller for filing.
● Make the necessary action or delegate the action to the concerned team
member via Enterprise Content Management System (ECMS) as per
distribution stamp.
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Consulted: Cluster Document Control Section Head

Informed:
Distribution List
14.2.4.4 PMM-014-COM-020-040 File the Confidential Correspondence
Procedure: ● File the signed received document in the confidential filing system.
● Review automatically updated document status via Enterprise Content
14.3 PMM-014-COM-030 Distribute Confidential Correspondence from NWC

to Consultant/Contractor
14.3.1 Objective
The objective of this process is to control the distribution of project Confidential
Correspondence from NWC to Consultant/Contractor for prescribed purposes, such as
approval, review and consultation, in a timely manner to the relevant project stakeholders, and
to ensure that proper records are made of all such communications.
14.3.2 Policies
Policies for this process are as in paragraph (12.2.2 Policies).
14.3.3 Flowchart
Figure 14-4 PMM-014-COM-030 Distribute Confidential Correspondence from NWC to
Consultant/Contractor Flowchart
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14.3.4 Procedures
14.3.4.1 PMM-014-COM-030-010 Draft the Confidential Correspondence to the
Contractor/Consultant
Procedure: ● Prepare the documents and attachments which will be sent from NWC
to Consultant/Contractor.
● Indicate to the NWC Project Document Controller that the
correspondence should be handled as confidential.
● Send the draft to the NWC Project Document Controller .
Roles: Responsible: Originator
14.3.4.2 PMM-014-COM-030-020 Prepare the Confidential Correspondence for Formal

Issue
Procedure: ● Check the details:

○ Date
○ Subject
○ Recipient
○ “Confidential” indicator that the document is confidential.
● Send hard copy original correspondence to NWC Project Manager for
his review and signature.
Accountable: NWC Project Document Controller
Consulted: Originator
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14.3.4.3 PMM-014-COM-030-030 Review and Sign the Prepared Confidential

Correspondence
Procedure: ● Review the documents and sign if acceptable or return to the originator
for adjusting.
● Return the hard copy original correspondence original to the NWC
Project Document Controller for transmission to Contractor/Consultant
Consulted: Originator (if required)
14.3.4.4 PMM-014-COM-030-040 Issue the Confidential Correspondence
Procedure: ● Scan the documents and upload to the Enterprise Content Management
System (ECMS) confidential folder. Fill up all the necessary fields in the
Enterprise Content Management System (ECMS).
● Send the hard copy original correspondence to Contractor/Consultant
Informed: Contractor/Consultant Document Controller
14.3.4.5 PMM-014-COM-030-050 Receive the Confidential Correspondence

○ Date
○ Subject
○ Recipient
○ Confidentiality
● Give the stamped copy to the carrier to return to the NWC Project
Document Controller for his filing.
Roles: Responsible: Contractor/Consultant Document Controller
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Consulted: Contractor/Consultant Project Manager

Informed:
Contractor/Consultant Project Manager
14.3.4.6 PMM-014-COM-030-060 Review the Confidential Correspondence and Define
Distribution for Information/Action
Procedure: ● Review the documents and note the confidentiality.

● Identify all the persons for distribution.
● Give the Documents to Contractor/Consultant Document Controller for
distribution.
● Make necessary action, if required.
Roles: Responsible: Contractor/Consultant Project Manager
Consulted: Distribution List
Informed: Contractor/Consultant Document Controller
14.4 PMM-014-COM-040 Distribute Non-Confidential Correspondence from

Consultant to NWC
14.4.1 Objective
The objective of this process is to control the distribution of project Non-Confidential
Correspondence from Consultant to NWC for prescribed purposes, such as approval, review
and consultation, in a timely manner to the relevant project stakeholders, and to ensure that
proper records are made of all such communications.
14.4.2 Policies
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14.4.3 Flowchart
Figure 14-5 PMM-014-COM-040 Distribute Non-Confidential Correspondence from Consultant to NWC
Flowchart
14.4.4 Procedures
14.4.4.1 PMM-014-COM-040-010 Issue the Non-Confidential Correspondence to NWC
Consultant to NWC.
● Ensure the proper details are provided:
○ Date
○ Subject
○ Recipient
● Send hard copy original correspondence to Consultant Project Manager
for his review and signature.
● Scan the documents and upload to the Enterprise Content Management
System (ECMS).
● Copy the correspondence and place the copy (hard) in the Consultant
filing system.
● Send the hard copy original correspondence original to the NWC Project
Roles: Responsible: Consultant Project Manager
Accountable: Consultant Project Manager
Consulted: NWC Project Document Controller
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14.4.4.2 PMM-014-COM-040-020 Receive the Non-Confidential Correspondence

○ Date
○ Subject
○ Recipient
● Give the stamped copy to the carrier to return to the Consultant for his
filing.
● Stamp the document (front page) with distribution stamp and give the
documents to the NWC Project Manager.
Consulted: Consultant Document Controller

Consultant Document Controller
Informed:
NWC Project Manager
14.4.4.3 PMM-014-COM-040-030 Review the Non-Confidential Correspondence and
Define Distribution for Information/Action
Procedure: ● Review the documents.

distribution stamp defining the required action.
● Give the Documents to NWC Project Document Controller for filing.
distribution stamp.
Informed: NWC Project Document Controller Distribution List
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14.4.4.4 PMM-014-COM-040-040 File the Non-Confidential Correspondence
Procedure: ● File the signed received document in the confidential filing system.

Contractor to NWC
14.5.1 Objective
Correspondence from Contractor to NWC for prescribed purposes, such as approval, review
14.5.2 Policies
14.5.3 Flowchart
Figure 14-6 PMM-014-COM-050 Distribute Non-Confidential Correspondence from Contractor to NWC
Flowchart
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14.5.4 Procedures
14.5.4.1 PMM-014-COM-050-010 Issue the Non-Confidential Correspondence
Contractor to NWC
● Ensure the proper details are provided:
○ Date
○ Subject
○ Recipient
● Send hard copy original correspondence to Contractor Project Manager
● Scan the documents and upload to the Enterprise Content Management
System (ECMS).
● Copy the correspondence and place the copy (hard) in the Contractor
filing system.
● Send the hard copy original correspondence to Consultant Document
Controller with extra cover page for the “Received” stamp.
Roles: Responsible: Contractor Project Manager
Accountable: Contractor Project Manager
Informed:
Contractor Project Manager

○ Reference Number (which include Project ID),
○ Date,
○ Subject,
○ Recipient, and
● Give the stamped copy to the carrier to return to the Contractor for his
filing.
Roles: Responsible: Consultant Document Controller
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Consulted: Contactor Document Controller
Informed: Contractor Document Controller
14.5.4.3 PMM-014-COM-050-030 Review the Non-Confidential Correspondence
Procedure: ● Receive the Enterprise Content Management System (ECMS)

notification message regarding new document uploaded.
● Open the document in Enterprise Content Management System (ECMS)
and review the contents.
● Communicate concerns to Supervision Consultant Project Manager as
needed.
Informed: Supervision Consultant (if needed)


distribution stamp defining the required action in coordination with the
NWC Project Manager.
● Give the Documents to Document Control for distribution.
distribution stamp.

NWC project Manager
Consulted:
Distribution List
Informed:
Distribution List
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14.5.4.5 PMM-014-COM-050-050 File the Non-Confidential Correspondence
Procedure: ● File the signed received document in the Consultant filing system.
Management System (ECMS)

NWC to Consultant
14.6.1 Objective
Correspondence from NWC to Consultant for prescribed purposes, such as approval, review
14.6.2 Policies
14.6.3 Flowchart
Figure 14-7 PMM-014-COM-060 Distribute Non-Confidential Correspondence from NWC to Consultant
Flowchart
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14.6.4 Procedures
14.6.4.1 PMM-014-COM-060-010 Draft the Non-Confidential Correspondence to the
Consultant
to Consultant.
● Send the draft to the NWC Project Document Controller.
14.6.4.2 PMM-014-COM-060-020 Prepare the Non-Confidential Correspondence for

Formal Issue

○ Date
○ Subject
○ Recipient
○ Attachment (number of pages).
Accountable: NWC Project Document Controller
14.6.4.3 PMM-014-COM-060-030 Review and Sign the Prepared Non-Confidential

Correspondence
Procedure: ● Review the documents and sign, if acceptable or return to the originator
for adjusting.
● Return the hard copy original correspondence to the NWC Project
Document Controller for transmission to the Consultant.
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14.6.4.4 PMM-014-COM-060-040 Issue the Non-Confidential Correspondence
System (ECMS). Fill-up all the necessary fields in the Enterprise Content
● Send the hard copy original correspondence to Consultant Document
Informed: Consultant Document Controller

○ Date
○ Subject
○ Recipient
Consulted: Consultant Project Manager

Informed:
Consultant Project Manager
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● Give the Documents to Consultant Document Controller for distribution.
● Make necessary action or delegate the action to the concerned team
distribution stamp.

NWC to Contractor
14.7.1 Objective
Correspondence from NWC to Contractor for prescribed purposes, such as approval, review
14.7.2 Policies
14.7.3 Flowchart
Figure 14-8 012-COM-070 Distribute Non-Confidential Correspondence from NWC to Contractor
Flowchart
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14.7.4 Procedures
Contractor
to Contractor.
● Send the draft to the NWC Project Document Controller.

NWC Projects Team
Consulted:
Contractor Team

Formal Issue

○ Date
○ Subject
○ Recipient

Correspondence
Procedure: ● Review the documents and sign, if acceptable or return to the originator
for adjusting.
● Return the hard copy original correspondence to the Document
Controller for transmission.
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Informed:
Consultant Project Manager
14.7.4.4 PMM-014-COM-070-040 Issue the Prepared Non-Confidential
Correspondence
System (ECMS) Fill-up all the necessary fields.
● Send the hard copy original correspondence to Contractor Document

○ Date
○ Subject
○ Recipient
Roles: Responsible: Contractor Document Controller
Consulted: Contractor Project Manager
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Supervision Consultant to Contractor
14.8.1 Objective
Correspondence from Consultant to Contractor for prescribed purposes, such as approval,
review and consultation, in a timely manner to the relevant project stakeholders, and to ensure
that proper records are made of all such communications.
14.8.2 Policies
14.8.3 Flowchart
Figure 14-9 PMM-014-COM-080 Distribute Non-Confidential Correspondence from Supervision
Consultant to Contractor Flowchart
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14.8.4 Procedures
Contractor
Consultant to Contractor.
Accountable: Supervision Consultant Project Manager

NWC Projects Team
Consulted:
Contractor Team

Formal Issue

○ Date
○ Subject
○ Recipient
● Send hard copy original correspondence to Consultant Project Manager
Roles: Responsible: Supervision Consultant Document Controller
Informed: Supervision Consultant Project Manager

Correspondence
Procedure: ● Review the documents, make coordination with the NWC Project
Manager if required and sign, if acceptable or return to the originator for
adjusting.
● Return the hard copy original correspondence to the Document
Controller for transmission to Contractor.
Roles: Responsible: Supervision Consultant Project Manager
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Originator
Consulted:
NWC Project Manager
Supervision Consultant Document Controller
Informed:
NWC Project Manager
14.8.4.4 PMM-014-COM-080-040 Issue the Prepared Non-Confidential
Correspondence
System (ECMS) Fill-up all the necessary fields
● Send the hard copy original correspondence to Contractor Document
Contractor Document Controller
Informed:
NWC Project Manager

○ Date
○ Subject
○ Recipient
Roles: Responsible: Contractor Document Controller
Consulted: Contractor Project Manager
Informed: Supervision Consultant Document Controller
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14.9 PMM-014-COM-090 Distribute Submittals for Approval

14.9.1 Objective
The objective of this process is to control the distribution of project submittals for approval for
prescribed purposes, such as approval, review and consultation, in a timely manner to the
relevant project stakeholders, and to ensure that proper records are made of all such
communications.
14.9.2 Policies
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14.9.3 Flowchart
Figure 14-10 PMM-014-COM-090 Distribute Submittals for Approval Flowchart
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14.9.4 Procedures
14.9.4.1 PMM-014-COM-090-010 Issue the Submittal
Procedure: ● The Originator shall prepare the documents and attachments.

● The Contractor Document Controller shall check the details:
○ Revision
○ Date
○ Document Description
● The Contractor Document Controller shall send hard copy original
Submittal to Contractor Project Manager for his review and signature.
● The Contractor Document Controller shall scan the submittal and upload
to the Enterprise Content Management System (ECMS) related
workflow.
● The Contractor Document Controller shall copy the submittal and place
the copy (hard) in the Contractor filing system.
● The Contractor Document Controller shall send the hard copy original
Submittal to Consultant Document Controller with extra cover page for
the “Received” stamp.
● Submittals may include but not limited to the following:
○ Material Approval Request
○ NWC Material Approval Form
○ Document Submittal Form (such as design packages)
○ Subcontractor Submittal Form
○ Drawing Submittal Form
○ Shop Drawing Submittal Form
○ As Built Drawing Submittal Form
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14.9.4.2 PMM-014-COM-090-020 Receive the Submittal
Procedure: ● Upon receiving, review the submittal and check for:

○ Revision
○ Date
filing.
● Distribute the submittal as per approved Project Document Distribution
Matrix.
Informed: Distribution list
14.9.4.3 PMM-014-COM-090-030 Review the Submittal

notification message regarding new document uploaded (if included in
workflow distribution).
● Open the document in Enterprise Content Management System (ECMS)
and review the contents.
● Inform the Consultant Project Manager in case of having comments or
recommendations.
Informed: Consultant Project Manager
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14.9.4.4 PMM-014-COM-090-040 Review, Evaluate and Sign the Submittal
Procedure: ● Review the submittal and provide comments.

● Decide submittal approval status and sign electronically on hard copy (in
coordination with the NWC Project Manager when required).
● Collect NWC Project Manager signature.
● Give the hard copy submittal to the Consultant Document Control for
filing and issuance to Contractor.
14.9.4.5 PMM-014-COM-090-050 Return the Submittal with Approval Status
Procedure: ● Scan the submittal and upload to the Enterprise Content Management
System (ECMS) Fill-up all the necessary fields.
● Send the hard copy original submittal to Contractor Document Controller
with extra cover page for the “Received” stamp.
● File the signed received submittal in the Consultant filing system.
● Update the submittal register.
14.10 PMM-014-COM-100 Distribute Non-Conformance Report (NCR)

14.10.1 Objective
The objective of this process is to control the distribution of Non-Conformance Report (NCR)for
prescribed purposes, such as approval, review and consultation, in a timely manner to the
relevant project stakeholders, and to ensure that proper records are made of all such
communications.
14.10.2 Policies
Policies for this process are as in paragraph (12.2.2 Policies) beside the following policies:
1. All NCRs must be closed before approving the final invoice.
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2. ANY BOQ ITEM THAT RELATED TO OPEN NCR SHALL NOT BE PAID UNLESS
THE OPEN NCR BE CLOSED.
3. All corrective and preventive actions must be formally proposed on the associated
non-conformance report and approved in principle before implementation.
4. Corrective action is designed to remedy the observed non-conformance and also to
treat its root cause in order to prevent recurrence.
5. Preventive actions are designed to eliminate the causes of potential non-
conformances, which are related to the actual non-conformance report and its root
cause.
6. A non-conformance report must not be closed until the approved corrective and
preventive actions have been taken, and the effectiveness of the actions has been
reviewed.
7. All corrective and preventive actions related to PMM application must be recorded in
a central register by the Quality Assurance Director.
14.10.3 Flowchart
Figure 14-11 PMM-014-COM-100 Distribute Non-Conformance Report (NCR) Flowchart
14.10.4 Procedures
14.10.4.1 PMM-014-COM-100-010 Draft the Non Conformance Report (NCR)
Procedure: ● Identify and compile Non Conformance Report (NCR) using (PMF-014-
COM-013 Non Conformance Report NCR).
● NCR can be for QA, QC or HSE.
● NCR originators include but not limited to inspectors, auditors or
reviewers.
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Supervision Consultant Quality Engineer (in construction

Accountable:
projects) / Supervision Consultant HSE Engineer (in
construction projects) / NWC Project Manager (in design
projects)
Consulted:
projects)
Supervision Consultant HSE Engineer (in construction
projects)
Informed:
projects)
projects)
NWC Project Manager (in design projects)
14.10.4.2 PMM-014-COM-100-020 Review and Sign the Non Conformance Report
(NCR)
Procedure: ● Review, evaluate and sign the NCR provided.

● Give the NCR to the Document Controller for transmission to Contractor
/ Design Consultant.
● Update the NCR register accordingly using (PMF-014-COM-042 Non
Conformance Register)
Roles: Responsible:
projects)
projects)
Accountable:
projects) / Supervision Consultant HSE Engineer (in
construction projects) / NWC Project Manager (in design
projects)
Consulted:
Originator
Supervision Consultant Document Controller (in
Informed:
construction projects)
Cluster Document Control Section Head (in design
projects)
14.10.4.3 PMM-014-COM-100-030 Issue the Non Conformance Report (NCR)
Procedure: ● Scan the NCR and upload to the Enterprise Content Management
System (ECMS).
● Send the hard copy original NCR to Contractor / Design Consultant
Document Controller .
● Send extra cover page for the receive stamp copy.
● Send copy to the NWC Project Manager for his information.
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Roles: Responsible:
Cluster Document Control Section Head (in design
projects)
Supervision Consultant Project Manager (in construction
Accountable:
projects)
Consulted:
projects)
projects)
Contractor Document Controller (in construction projects)
Informed:
Design Consultant Document Controller (in design
projects)
NWC Project Manager
14.10.4.4 PMM-014-COM-100-040 Receive the Non Conformance Report (NCR)
Procedure: ● Upon receipt, review the NCR and check for:

○ NCR Number (which include Project ID).
○ Description of Non-Conformity.
● Give the stamped copy to the carrier to return to the Supervision
Consultant (in construction projects) / NWC (in design projects) for his
filing.
● Distribute to Contractor / Design Consultant:
○ Project Manager
○ Quality Manager (if it is a Quality issue)
○ HSE Manager (if it is an HSE issue)
Roles: Responsible:
projects)
Contractor Project Manager (in construction projects)
Accountable:
Design Consultant Project Manager (in design projects)
Contractor Quality Manager (in construction projects)
Consulted:
Contractor HSE Manager (in construction projects)
Design Consultant Quality Manager (in design projects)
Design Consultant HSE Manager (in design projects)
Consultant Document Controller (in construction projects)
Informed:
NWC Document Controller (in design projects)
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14.10.4.5 PMM-014-COM-100-050 Propose Corrective and Preventive Actions
Procedure: ● Review and evaluate the NCR and its attached documents.
● Discuss findings and propose actions.
● Give the NCR to the Document Controller for submission to the
Consultant.
● Submit the NCR with proposed corrective and preventive actions to
Supervision Consultant (in construction projects) / Cluster (in design
projects) by Contractor / Supervision Consultant Document Controller .
Roles: Responsible:
Contractor Project Manager (in construction projects) /
Accountable:
Consulted:
Informed:
Cluster Document Control Section Head (in design project)
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14.10.4.6 PMM-014-COM-100-060 Approve the Proposed Corrective and Preventive

Action
Procedure: ● Distribute as required to one or more of the following:

○ Supervision Consultant Quality Engineer (in construction projects)
○ Supervision Consultant HSE Engineer (in construction projects)
○ Cluster Technical Services (in design projects)
● Review and discuss with NWC project manager.
● Approve/reject the proposed corrective and preventive actions.
● Send for issuance the NCR form which updated with the corrective and
preventive actions approval/rejection to:
○ Consultant Document Controller (in construction projects)
○ Cluster Document Control Section Head (in design projects)
● Issue the NCR which updated with the proposed corrective and
preventive actions approval/rejection to Contractor / Design Consultant.
● For PMM NCRs, send the approved corrective and preventive action to
Quality Assurance Director to update the (PMF-006-GOV-034 PMM
Corrective and Preventive Action Register).
● In case of rejecting the corrective and/or preventive actions, procedures
(PMM-014-COM-100-050 Propose Corrective Action) and (PMM-014-
COM-100-060 Review and Approve the Proposed Corrective Action)
shall be repeated until corrective actions approval.
Roles: Responsible:
projects)
projects)
Accountable:
projects) / NWC Project Manager (in design projects)
Consulted:
Informed:
projects)
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14.10.4.7 PMM-014-COM-100-070 Implement the Approved Corrective and Preventive

Actions
Procedure: ● After implementation of the approved corrective and preventive actions

and receiving acceptance document on the implementation such as
accepted WIR, request for closing the NCR by submitting it with the
acceptance document.
Roles: Responsible:
Contractor Project Manager (in construction projects) /
Accountable:
Consulted:
Informed:
Cluster Document Control Section Head (in design project)
14.10.4.8 PMM-014-COM-100-080 Close Non Conformance Report (NCR)
Procedure: ● Distribute the NCR as per approved Project Document Distribution

Matrix.
● Verify corrective action implementation through the approved WIR.
● Sign NCR closure section.
● Issue closed NCR to Contractor / Design Consultant and upload to
Enterprise Content Management System (ECMS).
Management System (ECMS)
Roles: Responsible:
projects)
Accountable:
projects) / NWC Project Manager (in design projects)
Consulted:
projects)
projects)
Informed:
NWC Project Manager
14.11 PMM-014-COM-110 Distribute Request for Information (RFI)

14.11.1 Objective
The objective of this process is to control the distribution of project Request for Information
(RFI) for prescribed purposes, such as approval, review and consultation, in a timely manner
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to the relevant project stakeholders, and to ensure that proper records are made of all such
communications.
14.11.2 Policies
14.11.3 Flowchart
Figure 14-12 PMM-014-COM-110 Distribute Request for Information (RFI) Flowchart
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14.11.4 Procedures
14.11.4.1 PMM-014-COM-110-010 Issue the Request for Information (RFI)
Procedure: ● Originator shall prepare the RFI and attachments using (PMF-014-COM-
014 Request for Information).
● Contractor Document Contractor shall check the details:
○ Revision
○ Date
● Contractor Document Contractor shall send hard copy original RFI to
Contractor Project Manager for his review and signature.
● After Contractor Project Manager signature, Contractor Document
Contractor shall scan the RFI and upload to the Enterprise Content
Management System (ECMS) related workflow.
● Contractor Document Contractor shall copy the RFI and place the copy
(hard) in the Contractor filing system.
● Contractor Document Contractor shall send the hard copy original RFI to
Consultant Document Controller with extra cover page for the “Received”
stamp.
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14.11.4.2 PMM-014-COM-110-020 Receive the Request for Information (RFI)
Procedure: ● Upon receiving, review the RFI and check for:

○ Date,
○ Required Date,
○ Information Required, and
filing.
● Distribute the RFI as per approved Project Document Distribution Matrix.
Consulted: Supervision Consultant Project Manager
Informed: Distribution list
14.11.4.3 PMM-014-COM-110-030 Review the Request for Information (RFI)

notification message regarding new RFI uploaded (if included in workflow
distribution).
● Open the RFI in Enterprise Content Management System (ECMS) and
review the contents.
● Inform the Consultant Project Manager in case of having
comments/recommendations.
Consulted: Supervision Consultant Document Controller
Informed: Supervision Consultant Project Manager
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14.11.4.4 PMM-014-COM-110-040 Review the Request for Information (RFI) and

Provide the Requested Information
Procedure: ● Review the RFI and provide the information requested, if required,
discuss with the NWC Project Manager.
● Sign the RFI.
● Return hard copy original RFI to the Document Controller for issue to the
Contractor.
14.11.4.5 PMM-014-COM-110-050 Return the Request for Information (RFI) and

Collated Information
Procedure: ● Scan the RFI and upload to the Enterprise Content Management System
(ECMS) Fill-up all the necessary fields.
● Send the hard copy original RFI to Contractor Document Controller with
extra cover page for the “Received” stamp.
● File the signed received RFI in the Consultant filing system.
Consulted: Supervision Consultant Project Manager
14.12 PMM-014-COM-115 Cascade Objectives

14.12.1 Objective
The objective of this process is to ensure proper cascade of Project Management Objectives
(business, department, cluster and/or project objectives) to all users of the PMM, including
second party Consultants and Contractors.
14.12.2 Policies
Policies for this process are as in paragraph (12.2.2 Policies) beside the following policies:
1. A formal cascade of objectives must take place for alignment of each Project Team
member’s personal performance targets with the strategic and tactical objectives of
the NWC business. See the (PMF-014-COM-057 Objectives Cascade Model).
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Figure 14-13 Objectives Cascade Model
2. Project management system information may be disseminated through a variety of

channels, including posters, notice boards, competitions, occasional bulletins, alerts
and periodic newsletters.
3. Information must be disseminated regarding project management system innovation
and improvement.
14.12.3 Flowchart
Figure 14-14 PMM-014-COM-115 Cascade Objectives Flowchart
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14.12.4 Procedures
14.12.4.1 PMM-014-COM-115-010 Cascade Objectives
Procedure: ● Prepare written objectives for dissemination through:

○ structure (PMF-014-COM-057 Objectives Cascade Model) to
Cascade of Objectives Down to the Personal and Tactical Level.
○ process (PMM-013-HUM-030 Develop the Project Team).
● Periodically, ensure the continuous objectives cascading is performed.
Consulted: Cluster Senior GM
Informed: Cluster Projects Team
14.13 PMM-014-COM-120 Design Performance Reporting

14.13.1 Objective
The objective of this process is to promote a Kingdom-wide protocol for the format, content,
timing, consolidation and escalation of project progress reports, and management reports for
the NWC Clusters and HQ.
14.13.2 Policies
1. Monthly progress reports by Design Consultant must include the following (as
applicable):
● Updated “Primavera P6” schedule
● Invoice summary log
● Variation Order summary
● Progress curves and earned value calculation
● Forecasts
● Identification of issues
● Updated risk register
● Identification of potential claims
● Indication of submitted claims
● Summary cost / budget information
● Critical Item Action Summary
● Design status
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2. The format of the monthly progress report must be agreed with the Design Consultant
at his kick-off meeting with NWC, held during his mobilization period after contract
award.
14.13.3 Flowchart
Figure 14-15 PMM-014-COM-120 Perform Design Performance Reporting Flowchart
14.13.4 Procedures
14.13.4.1 PMM-014-COM-120-010 Conduct Weekly Design Progress Meetings
Procedure: ● Conduct weekly meetings with all relevant team members including
Design Consultant to discuss design progress using (PMF-014-COM-
021 Weekly Meeting Agenda).
● Highlight any issues or concerns which may affect design progress.
● Write and distribute MOM using (PMF-014-COM-022 Weekly Meeting
Minutes).
Roles: Responsible:
NWC Project Manager
Design Consultant
Consulted:
Cluster scheduling section head
NWC Project Team
Informed:
Design Consultant
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14.13.4.2 PMM-014-COM-120-020 Develop Design Consultant Monthly Progress

Report
Procedure: ● Develop Design Consultant monthly progress report based on outcome

of weekly meetings.
Consulted: Cluster scheduling section head
14.13.4.3 PMM-014-COM-120-030 Evaluate the Design Consultant’s Monthly Progress

Report
Procedure: ● Distribute the monthly progress report as per approved Project

Document Distribution Matrix.
● Evaluate the Design Consultant’s monthly progress report.
● Identify any issues highlighted as concern relating to progress.
● Utilize (PMF-014-COM-018 Performance Report Checklist).
Roles: Responsible:
NWC Project Manager
Consulted:
14.13.4.4 PMM-014-COM-120-040 Conduct Monthly Progress Meeting
Procedure: ● Conduct monthly meetings with all relevant team members to discuss
progress using as applicable the (PMF-014-COM-023 Monthly Progress
Meeting Agenda).
● Write and distribute MOM using as applicable the (PMF-014-COM-024
Monthly Progress Meeting Minutes).
Roles: Responsible:
NWC Project Manager
Design Consultant
Consulted:
Cluster scheduling section head
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Informed: NWC Project Team
14.13.4.5 PMM-014-COM-120-050 Add an Executive Summary to the Consultant’s

Report
Procedure: ● Add an executive summary to the Consultant’s report.

● Ensure all major issues identified within the progress reports are
included.
● Distribute the executive summary to NWC Project Manager and Cluster
Contracts Administration Section Head for review.

Consulted:
NWC Project Manager
Design Consultant
NWC Project Manager
Informed:
Design Consultant
14.13.4.6 PMM-014-COM-120-060 Conduct Internal Technical Meeting to Discuss the
Reported Design Progress
Procedure: ● Conduct an internal technical meeting to discuss the reported design

progress and status.
● Check the Design Consultant’s report and Cluster Technical Services
Director’s executive summary.
● Ensure all Performance Reporting checklists have been completed as
required.
● Identify any areas of concern and discuss with relevant parties.
● Ensure all changes are identified and captured within the costs and
schedule.
● Develop action items with responsibilities.
● Escalate any issues which have been identified to date which cannot be
resolved at project level.
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Consulted:
Informed:
Design Consultant (if required)
14.13.4.7 PMM-014-COM-120-070 Develop and Distribute Management Reports
Procedure: ● Develop and distribute management reports to all relevant parties.

● Ensure all required documentation and relevant information has been
included.
● Escalate issues as required.

Consulted:
Cluster Projects GM
Informed:
14.14 PMM-014-COM-130 Construction Performance Reporting

14.14.1 Objective
The objective of this process is to promote a Kingdom-wide protocol for the format, content,
timing, consolidation and escalation of project progress reports, and management reports for
the NWC Clusters and HQ.
14.14.2 Policies
1. Monthly progress reports by Contractors must include the following (as applicable):
● Updated “Primavera P6” schedule
● Invoice summary log
● Variations Order summary
● Progress curves and earned value calculation
● Forecasts
● Identification of issues
● Updated risk register
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● Identification of potential claims

● Indication of submitted claims
● Summary cost / budget information
● NCR Status
● HSE Summary
● Long lead items status
● Shop drawings status
2. The format of the monthly progress report shall be agreed with the Contractor at his
kick-off meeting with NWC, held during his mobilization period after contract award.
14.14.3 Flowchart
Figure 14-16 PMM-014-COM-130 Perform Construction Performance Reporting Flowchart
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14.14.4 Procedures
14.14.4.1 PMM-014-COM-130-010 Conduct Construction Weekly Progress Meeting
Procedure: ● Conduct weekly meetings with all relevant team members to discuss
Construction progress.
● Use the weekly meeting agenda (PMF-014-COM-021 Weekly Meeting
Agenda).
● Highlight any issues or concerns which may affect construction progress
including quality and HSE.
● Write and distribute MOM using (PMF-014-COM-022 Weekly Meeting
Minutes).

Contractor
Consulted:
NWC Projects Team
Informed:
14.14.4.2 PMM-014-COM-130-020 Develop Contractor Daily, Weekly and Monthly
Construction Progress Report
Procedure: ● Develop and submit Contractor daily construction report (PMF-014-

COM-050 Daily Construction Report).
● Develop and submit Contractor weekly Construction progress report
(PMF-014-COM-049 Weekly Construction Progress Report).
● Develop and submit Contractor monthly progress report (PMF-014-
COM-047 Monthly Progress Report) based on outcome of weekly
meetings.
● Develop and submit the monthly quality report (PMF-012-QUA-114
Monthly Quality Report) and monthly HSE Report (PMF-017-HSE-014
Monthly HSE Report).
● Highlight any issues or concerns which may affect construction progress
including quality and HSE.
Accountable: Supervision Consultant
Consulted: Contractor Team

NWC Project Manager
Informed:
Supervision Consultant Document Controller
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Guidelines: ● The Monthly Report shall include but not limited to the following:
○ Updated “Primavera P6” schedule
○ Invoice summary log
○ Variations Order summary
○ Progress curves
○ Earned value calculation
○ Forecasts
○ Identification of risks and issues
○ Identification of potential claims
○ Status of submitted claims
○ Summary cost / budget information
○ Critical Item Action Summary
○ NCR Status
○ HSE Summary
14.14.4.3 PMM-014-COM-130-030 Evaluate the Construction Monthly Progress Report
Procedure: ● Distribute the Contractor’s Construction monthly progress report as per

approved Project Document Distribution Matrix.
● Evaluate the Contractor’s construction monthly progress report.
● Identify any issues highlighted as concern relating to progress.
● Utilize the Performance Report Checklist (PMF-014-COM-018
Performance Report Checklist).

Consulted:
NWC Project Manager
Contractor
Informed:
NWC Project Manager
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14.14.4.4 PMM-014-COM-130-040 Conduct Monthly Progress Meeting
Procedure: ● Conduct monthly meetings with all relevant team members to discuss
progress using (PMF-014-COM-023 Monthly Progress Meeting
Agenda).
● Highlight any issues or concerns which may affect construction progress.
● Write and distribute MOM using (PMF-014-COM-024 Monthly Progress
Meeting Minutes).

Consulted:
Contractor
NWC Project Manager
Informed:
Contractor
14.14.4.5 PMM-014-COM-130-050 Add an Executive Summary to the Construction
Monthly Report
Procedure: ● Review the Construction Monthly report and identify improper

information.
● Create an executive summary to the Construction Monthly progress
report highlighting the improved information using (PMF-014-COM-056
Executive Summary of the Monthly Progress Report) which follows same
structure of the monthly progress report to ensure the inclusion of all
aspects of the progress reports.
● Distribute the executive summary to NWC Project Manager and Cluster
Contracts Administration Section Head for review.

Consulted:
Contractor
NWC Project Manager
Informed:
Contractor
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14.14.4.6 PMM-014-COM-130-060 Check the Construction Monthly Report and

Supervision Consultant’s Executive Summary
Procedure: ● Review the Construction Monthly report and Supervision Consultant’s

executive summary.
● Ensure all issues discussed previously have been identified clearly.
● Identify any issues highlighted as concern relating to progress including
quality and HSE.
● NWC Project Shall forward the Construction Monthly Progress report and
the Supervision Consultant Executive Summary to Business Unit
Construction Director and Scheduling & Control Director.

Supervision Consultant Project Manager
Consulted:
Informed:
14.14.4.7 PMM-014-COM-130-070 Conduct Internal Meeting to Discuss the Reported
Construction Progress and Status
Procedure: ● Conduct internal meeting to discuss the reported construction progress

and status.
● Identify any areas of concern which need to be addressed.
● Develop action items with responsibilities using (PMF-014-COM-051
Standard Minutes of Meeting Template).
● After the meeting, escalate any issues which have been identified to date
which cannot be resolved at project level.

Consulted:
Supervision Consultant Project Manager (if required)
Informed:
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14.14.4.8 PMM-014-COM-130-080 Develop and Distribute Management Reports
Procedure: ● Ensure all required documentation and relevant information and issues
have been included.
● Develop and distribute management reports to all relevant parties.

Consulted:
Cluster Projects GM
Informed:
14.14.4.9 PMM-014-COM-130-090 Develop and Submit Monthly Cluster Cost Report
Procedure: ● Collect relevant cost data for all cluster projects using (PMF-011-COS-
019 Monthly Cost Report Input Forms).
● Develop Monthly Cluster Cost Report (PMF-011-COS-020 Monthly
Cluster Cost Report Template).
● Submit Monthly Cluster Cost Report to Scheduling & Control GM.
Roles: Responsible: Cluster Cost Control Section Head

NWC Project Managers
Consulted:
Cluster Projects GM
Informed:
14.15 PMM-014-COM-140 Manage Stakeholders

Refer to (PMM-015-RIS Project Risk Management) for details of the process used to manage
stakeholders. This includes stakeholder identification, stakeholder mapping and stakeholder
management through action plans. The process is mandated on every capital project and starts
with brainstorming in formal risk management workshops.
Use (PMF-014-COM-048 Stakeholder Communication Plan Template) to identify communication
requirements and frequency for each stakeholder.
The table below identifies the KPIs of Project Communications Management. The NWC Project
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Table 14-1 Project Communications Management KPIs

Detail Measurement

responses to overdue
correspondences responses/closes to
1 Monthly 0 1 >1
from correspondences from
Consultant/Contra Consultant/Contractor to
ctor to NWC NWC.
Overdue
responses to
2 overdue responses to Monthly 0 1 >1
Submittals for
Submittals for Approval.
Approval

3 responses to overdue responses to Monthly 0 1 >1
corrective actions corrective actions.

responses to overdue responses to
4 Monthly 0 1 >1
Requests for submitted Requests for
Information (RFI) Information (RFI).
late submissions of the
Late submission of
monthly project
project progress
5 progress reports by Monthly 0 2 >2
report by
contractor in the project
contractor
against the agreed
submission date.
Late submission of
monthly executive
executive
summaries of the
summary of project
6 monthly project Monthly 0 2 >2
progress report by
progress reports by
supervision
supervision consultant
consultant
in the project against the
agreed submission date.
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Detail Measurement
Late submission of
monthly project
project progress
7 progress reports by Monthly 0 6 >6
report by
contractor in the cluster
contractor
against the agreed
submission dates.
Late submission of monthly executive
executive summaries of the
summary of project monthly project
8 Monthly 0 6 >6
progress report by progress reports by
supervision supervision consultant
consultant in the cluster against the
agreed submission
dates.
14.17 Attachments
COM Project Communications Management).
Table 14-2 Project Communications Management forms, templates and guidelines
Document No. Title
EPM-ID0-PR-000004 Project Hard Copy Filing Procedure
EPM-IT0-TP-000001 Project Information & Communications Technology Plan Template
PMF-014-COM-003 Document Cover Note
PMF-014-COM-004 Document Approval Form
PMF-014-COM-005 Document Submittal Form
PMF-014-COM-006 Document Submittals Register
PMF-014-COM-010 Project Subcontractors Register
PMF-014-COM-011 Drawing Submittal Form
PMF-014-COM-012 Drawing Submittals Register
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Document No. Title
PMF-014-COM-013 Non Conformance Report NCR
PMF-014-COM-014 Request for Information
PMF-014-COM-017 Progress Evaluation Checklist
PMF-014-COM-018 Performance Report Checklist
PMF-014-COM-021 Weekly Meeting Agenda
PMF-014-COM-022 Weekly Meeting Minutes
PMF-014-COM-023 Monthly Progress Meeting Agenda
PMF-014-COM-024 Monthly Progress Meeting Minutes
PMF-014-COM-042 Non Conformance Reports Register
PMF-014-COM-043 Shop Drawing Submittal Form
PMF-014-COM-044 Shop Drawing Submittals Register
PMF-014-COM-045 Project Folder Side Label Template
PMF-014-COM-046 Project Document Distribution Matrix Template
PMF-014-COM-047 Monthly Progress Report
PMF-014-COM-048 Stakeholder Communication Plan Template
PMF-014-COM-049 Weekly Construction Progress Report
PMF-014-COM-050 Daily Construction Report
PMF-014-COM-051 Standard Minutes of Meeting Template
PMF-014-COM-052 Subcontractor Approval Request
PMF-014-COM-053 NWC Subcontractor Approval Form
PMF-014-COM-054 As Built Drawing Submittal Form
PMF-014-COM-055 As Built Drawing Submittals Register
PMF-014-COM-056 Executive Summary of the Monthly Progress Report
PMF-014-COM-057 Objectives Cascade Model
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Section 15 - Project Risk Management
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History Page

12/01
● The Value Management is eliminated from this section as it is covered in Value
Engineering Section.
● The process “PMM-015-RIS-010 PMM-013-RIS-010 Risk Management at Portfolio
Level” is elaborated.
● The process “PMM-015-RIS-020 Plan Project Risk Management” is elaborated.
● The process “PMM-015-RIS-030 Identify Risks at Project Level” is elaborated.
● The process “PMM-015-RIS-040 Qualitative Risk Analysis at Project Level” is
Change elaborated.
Description ● The process “PMM-015-RIS-050 Quantitative Risk Analysis at Project Level” is
elaborated.
● The process “PMM-015-RIS-060 Plan Risk Responses at Project Level” is
elaborated.
● The process “PMM-015-RIS-070 Implement Risk Responses at Project Level” is
elaborated.
● The process “PMM-015-RIS-080 Monitor Risk Responses at Project Level” is
elaborated.
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06/02
This section is developed as an update to “Risk” section in first version the Project
the changes:
● Separating a process for risk management at program/portfolio level.
● Separating a process for risk management at project level.
● Adding guidelines for risk tolerance considerations.
● Adding guidelines for including of risk monitoring and review in risk
management planning.
● Re-arranging procedures among processes.
Change
● Referring to forms and templates’ names and numbers inside the procedures.
Description
● Adding guidelines for stakeholders / projects interfaces.
● Separating process for implementing risk response plans.
● Adding guidelines for closing risk registers.
● Adding Stakeholder Register Template.
● Updating and simplifying flowcharts.
● Updating forms and templates.
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15 Project Risk Management

The subjects of this particular section of the Project Management Manual (PMM) are Project Risk
Management. Risks have negative impacts (denoted by threats) and (positives impacts denoted by
opportunities).
The high-level process map for Project Risk Management is illustrated below in Figure 15-1:
Figure 15-1 High-Level Process Map for Project Risk Management
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15.1 PMM-015-RIS-010 Risk Management at Portfolio Level

15.1.1 Objective
The objective of this process is to ensure a proactive, early warning approach is adopted
towards maximizing opportunities to increase values to be delivered and responding to threats
that may lower the values to be delivered.
The Risk Management are carried out in an integrated manner, based around the scheduling
of a formal series of workshops.
At the portfolio level, risk management takes into account the entire organizational framework.
A portfolio is a collection of projects, programs, subsidiary portfolios, and operations managed
as a group to achieve strategic objectives.
15.1.2 Policies
1. NWC Projects & Technical Services department fully supports the risk appetite and
takes all necessary steps at all times to ensure that the Project Management System
is maintained in alignment with the risk appetite and strategies. There are no
exceptional circumstances where the prevailing Risk Management policies of the
NWC business may be ignored at the level of a Cluster, program or individual project.
2. The planning of Risk Management initially starts at Cluster program level (i.e. for
groups of inter-related and connected projects) during the Inception phase and then
cascades to individual project level during the Feasibility phase of each individual
project.
3. In case that, the project is part of a program, the program Manager in the cluster is
responsible for ensuring that the Risk Management plans of the individual projects
within his program are consistent, optimized and free from conflict or contradiction.
15.1.3 Flowchart
Figure 15-2 PMM-015-RIS-010 Risk Management at Portfolio levels Flowchart
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15.1.4 Procedures
15.1.4.1 PMM-015-RIS-010-010 Identify Risks at Cluster Portfolio Level
Procedure: ● New asset needs and wants are described in the Business Case
documents.
● Cluster Risk Section Head compiles and distributes relevant information
to the planned attendees of workshop No.1.
● The introduction of the new asset needs shall be considered before the
workshop in the context of the following:
○ Current risk appetite of NWC
○ Current risk tolerance identification criteria in NWC
○ Lessons learned from previous projects
○ Existing Portfolio Risk Registers (PMF-015-RIS-017 Portfolio Risk
Register Template)
○ (PMF-015-RIS-013 Guide to Hierarchical Sources of Risk)
● The planned attendees send their completed notes to the Cluster Risk
Section Head, in a timely manner on or before the due date advised by
the Risk Section Head.
● The completed notes are assessed by the Cluster Risk Section Head.
● Workshop agenda is developed and distributed to invited individuals,
with any information considered necessary in order to ensure that the
invited individuals are well prepared to attend the workshop.
● Set a date for the workshop.
● The workshop is carried out on the arranged date, in accordance with
the agenda.
● See (PMF-015-RIS-014 Examples of Risk Management Tools and
Techniques).
● Required outputs of the workshop are:
○ a formal workshop report.
○ updated (PMF-015-RIS-017 Portfolio Risk Register).
showing the agreed action plans which nominated Risk Owners must
develop in the next step.
● Perform Quantitative Risk Analysis (if required).
● Forward the cluster portfolio risk register to the HQ risk management
lead.
● HQ risk management lead shall review, evaluate and update the
company wide projects portfolio risk register accordingly.
Roles: Responsible:
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Consulted:
Director
Cluster Scheduling Section head
Informed:
Director
Guidelines: ● The risk tolerance of the following will be considered:
○ Cost
○ Schedule
○ The political, legal and regulatory constraints
○ Safety considerations
○ Environmental obligations
○ Customer expectations
○ Other factors as appropriate.
15.1.4.2 PMM-015-RIS-010-020 Develop Action Plans
Procedure: ● Risk owners nominated in the workshop report develop written action
plans in order to describe steps for opportunity adoption/exploitation and
for associated risk mitigation.
● Each action plan must be formally approved by the cluster Risk Section
Head and with consolidation of details into the Portfolio Risk Register.
● At a minimum, the risk treatment plans will contain:
○ The justification and rationale for selecting the treatment activities.
○ The treatment activity implementation resource requirements (i.e.
cost, time, manpower and materials) and targeted timing for
implementation of the treatment activities and evaluation.
○ The named individuals who will be responsible and accountable for
the treatment activities.
○ The expected outcomes in terms of benefits.
Roles: Responsible: Risk Owners (as nominated in the workshop no. 1 report)
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Informed:
Director
Cluster Projects GM
15.1.4.3 PMM-015-RIS-010-030 Implement the Action Plans
Procedure: ● The nominated Action Owner(s) implements the action plan.

● All action plan implementation is monitored and controlled in accordance
with (PMM-015-RIS-080 Monitor Risk Responses).
● Action Owners provide progress reports to the respective Risk Owners.
● Risk Owners provide verified and consolidated progress reports to the
Cluster Risk Section Head.
● The Portfolio Risk Register will be accordingly updated by the Cluster
Risk Section Head.
● The risk treatment process is iterative and its activities will consist of:
○ Implementing the selected risk treatment action plan.
○ Evaluating the risk treatment action plan effectiveness.
○ Continuous assessment of the results against the pre-defined risk
tolerance criteria to assess whether the residual risks are tolerable.
Roles: Responsible: Action Owners
Accountable: Risk Owner

Informed:
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15.1.4.4 PMM-015-RIS-010-040 State Assumptions Regarding Scope, Schedule, Cost

and Quality of Projects
Procedure: ● The up-to-date Portfolio Risk Register is used to develop written

assumptions regarding the following to be appended to the original
business case documents:
○ Scope (i.e. preliminary scope statements to properly define the new
asset needs and wants).
○ Schedule (i.e. time to design and time to construct, based upon a
stated high-level procurement strategy).
○ Cost (i.e. budget estimates for design and construction, including
clear statements regarding contingency sums advised at this stage).
○ Quality (i.e. the underlying technical specifications, customer service
performance levels, and local legislation requirements which must
be satisfied).
Roles: Responsible:
Cluster Risk Section head
Consulted:
Informed:
Director
Cluster Projects GM
15.2 PMM-015-RIS-020 Plan Project Risk Management

15.2.1 Objective
The objective of this process is to ensure a proactive, early warning approach is adopted
towards maximizing opportunities to increase values to be delivered and responding to threats
that may lower the values to be delivered.
The Risk Management is carried out based on formal scheduled series of workshops.
15.2.2 Policies
1. Every individual Project Management Plan must have a clear section for Risk
Management.
2. The approved Project Management Plan, including the Risk Management Plan
Section, must be included in the tender document when NWC is tendering for design,
supervision and construction.
3. The approved Project Management Plan must:
i. be supported by a risk register.
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ii. include an approved risk workshops schedule as per risk workshop criteria
mentioned below.
4. The project risk register at initial planning stage must consider:
i. Project assumptions.
ii. Design options.
iii. known risks identified during the FYPPP stage (not a part of PLC).
5. Every individual project risk register is managed, throughout the project lifecycle, by
NWC Project Manager with support of the Cluster Risk Section Head. NWC Project
Manager is dully responsible of Project risk register. He must:
i. ensure that the project risk register is continuously kept up-to-date throughout the
project lifecycle.
ii. report it to PMO at HQ on monthly basis.
6. The risk workshops conducting criteria are as follows:
i. For projects of values ≥ SAR100 Million risk workshop conducting is mandatory
at the beginning of every project stage in the project lifecycle.
ii. For projects of values ≤ SAR100 Million risk workshop conducting is mandatory
at the beginning of:
● Initial planning stage
● Design Stage (in design-Bid-build PLC)
● Construction Stage (in design-Bid-build PLC)
● Design and Construction stage (in Design & Build PLC)
For the remaining stages risk workshop conducting is strongly recommended
depending on the project size, complexity, criticality, strategic importance and
relationship with other projects.
7. All risk workshops in the project, whether mandatory or not, must be stated in the Risk
Management Plan Section of the Project Management Plan (PMP) and tender
documents of design and construction. Risk workshops that stated in the PMP must
be implemented as per stated.
construction) including Risk Management Plan Section for the project. These
management plans must comply with the Risk management requirements defined in
9. The Risk Management Plans in PMPs of NWC, Design and Construction must be kept
up-to-date throughout the project life cycle.
10. NWC project team, Design Consultant, Supervision Consultant and Contractor are
responsible for continuously monitoring for any potential risk during the project
lifecycle regardless of the ongoing stage. Every potential risk must be immediately
reported to NWC Project Manager. The five processes after the process “PMM-015-
RIS-030 Identify Risks at Project Level” shall continually be performed on urgent basis
for the identified risk once it is identified.
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11. When conduct a risk workshop, the six processes after this process “PMM-015-RIS-
020 Plan Project Risk Management at Project Level” shall continually be performed
on urgent basis.
i. Process “PMM-015-RIS-030 Identify Risks at Project Level” and “PMM-015-RIS-
040 Qualitative Risk Analysis at Project Level” shall be performed as part of the
risk workshops. Every risk workshop shall include the outputs of these two
processes.
ii. Processes“PMM-015-RIS-050 Quantitative Risk Analysis at Project Level” and
“PMM-015-RIS-060 Plan Risk Responses at Project Level” shall be performed
after the risk workshops utilizing the workshop outputs.
iii. Processes “PMM-015-RIS-070 Implement Risk Responses at Project Level” and
“PMM-015-RIS-080 Monitor Risk Responses at Project Level”.
Figure 15-3 Relation between Risk Process and Risk Workshops
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15.2.3 Flowchart
Figure 15-4 PMM-015-RIS-020 Plan Project Risk Management at Project Level Flowchart
15.2.4 Procedures
15.2.4.1 PMM-015-RIS-020-010 Develop the Risk Management Plan Section of the

includes a dedicated section for Risk management.
● Use (PMF-015-RIS-022 Project Risk Management Plan Guidelines) as a
guideline to create NWC Risk Management Plan.
● Update the Project Risk Section throughout the lifecycle with the
Roles: Responsible:
NWC Project Manager
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Cluster Projects GM
Consulted:
Risk Management Manager
Cluster PMO Manager
Informed:
Cluster Projects GM
15.2.4.2 PMM-015-RIS-020-020 Approve the Risk Management Plan Section of Project
Management Plan
Procedure: ● Review and Approve the Risk Management Plan Section of Project
Management Plan.
satisfactorily.
Roles: Responsible: Cluster PMO Manager

Consulted:
NWC Project Manager
Cluster Projects GM
Informed:
NWC Project Manager
Cluster Projects GM
15.2.4.3 PMM-015-RIS-020-030 Ensure Risk Requirements and Technical Evaluation

includes a dedicated section for Risk management.
own Risk Management Plan and must submit it during the contractual
proposals includes Risk assessment criteria, which addresses:
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Consulted:
15.2.4.4 PMM-015-RIS-020-040 Develop Project Risk Management Plan Section in the

Project Design Management Plan
Procedure: ● Develop Project Risk Management Plan Section in the Project Design
Management Plan.
● Ensure that the Project Risk Management Plan Section in the Project
Design Management Plan is in alignment with the Project Risk
Director about the development of the Project Risk Management Plan
Section.
● Include the Project Risk Management Plan Section in the Project Design
Management Plan.

NWC Project Manager
Consulted:
15.2.4.5 PMM-015-RIS-020-050 Ensure Risk Requirements and Technical Evaluation

Risk Management Plan and must submit it during the contractual
proposals includes Risk assessment criteria, which addresses:

Consulted:
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15.2.4.6 PMM-015-RIS-020-060 Develop the Construction Risk Management Plan

Section
Procedure: ● Develop Project Risk Management Plan Section in the Project

● Ensure that the Project Risk Management Plan Section in the Project
Design Management Plan is in alignment with the Project Risk
the development of the Project Risk Management Plan Section.
● Include the Project Risk Management Plan Section in the Project

NWC Project Manager
Consulted:
15.3 PMM-015-RIS-030 Identify Risks at Project Level

15.3.1 Objective
The objective of this process is to describe risks in a consistent manner across the project;
while linking the descriptions to strategic business objectives, portfolio objectives and project
objectives prevailing risk appetite of the NWC business.
15.3.2 Policies
1. All Project Team members are responsible for identifying risks in a timely manner to
the NWC Project Manager.
2. All Project Team members are responsible for attending risk workshops when
requested by the Cluster Risk management section Head and for carrying out and
reporting their agreed follow-up actions.
3. Risk registers must be specific and unique to the project. Risks must be linked to the
specific objectives of the project and, by extension, to the specific, related objectives
of the business. All analysis activities must then be carried out objectively according
to how the affected objectives are “ranked” between themselves. Available resources
must be focused on the higher-ranking objectives, in order to best serve the NWC
business as a whole.
4. NWC project team, Design Consultant, Supervision Consultant and Contractor are
responsible for continuously monitoring for any potential risk during the project
lifecycle regardless of the ongoing stage. Every potential risk must be immediately
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reported to NWC Project Manager. The five processes after the process “PMM-015-
RIS-030 Identify Risks at Project Level” shall be performed to the identified risk once
it is identified.
5. Risk workshops must involve the personal contribution and attendance of all relevant
stakeholders, as far as practicable.
6. NWC Project Managers must not act as the facilitator for Risk workshops on their
project. The workshops must be facilitated by specialist (e.g. the Cluster Risk section
Head or may be an external Consultant if the project is particularly complex, novel or
strategic/critical). The Project Manager must attend the workshops for monitoring and
controlling the actions agreed in the workshop and delegated to named action owners.
7. It is important to ensure that a thorough risk identification is undertaken by conducting
additional workshops at the beginning of each project stage and reviewed regularly,
especially when there are approved variations, so that any new or emerging risks can
be identified for subsequent analysis in a timely manner.
15.3.3 Flowchart
Figure 15-5 PMM-015-RIS-030 Identify Risks at Project Level Flowchart
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15.3.4 Procedures
15.3.4.1 PMM-015-RIS-030-010 Identify and Analyze Objective, Issues, Constraints &
Assumptions
Procedure: ● Identify project objectives and link them to business objectives.

● These objectives are then structured into an Objectives Hierarchy
consisting of a single Primary Objective, supported by Secondary
Objectives which in turn, are supported by Tertiary Objectives. The
Secondary Objectives are then ranked in order of relative importance.
● Each project objective identified shall be clearly and unambiguously
described.
● It is vital that the issues, constraints and assumptions relating to a
business case and its associated project are clearly identified and
analyzed so that they can be clearly understood by all those involved in
the successful delivery of the business case and related project.
● The individual issues, constraints and assumptions are identified in three
separate lists and prioritized on those lists which shall be iteratively
updated through the project life cycle.
NWC Project Manager
Roles: Responsible:
Design Consultant (if assigned)
Supervision Consultant (if assigned)
Contractor (if assigned)
Consulted:
Director
Informed: Cluster Risk Section Head
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15.3.4.2 PMM-015-RIS-030-020 Stakeholder Mapping and Positioning
Procedure: ● Individuals or Groups will be assigned responsibilities for establishing

and managing a Stakeholder Management and Communication Plan.
Stakeholder management will incorporate the following:
○ Identifying and mapping the critical and non-critical stakeholders
considering the following:
- (PMF-015-RIS-005 Project Stakeholder Mapping Guidelines).
- (PMF-015-RIS-007 Stakeholder Map Example).
- (PMF-015-RIS-016 List of Potential Stakeholders).
○ Identifying Stakeholders-Project Interfaces (PMF-015-RIS-019
Stakeholders-Project Interface Examples).
○ Identifying through analysis, stakeholder current and required
positions in respect of the project Stakeholder Positioning Analysis
using (PMF-015-RIS-008 Stakeholder Positioning Analysis).
● The ranked objectives and stakeholder documents are then re-validated
at each subsequent project lifecycle stage.
NWC Project Manager
Roles: Responsible:
Consulted: Business Unit Construction Director
15.3.4.3 PMM-015-RIS-030-030 Conduct Risk Workshop
Procedure: ● Risk workshops shall be conducted as per planned in NWC Project

Management Plan (PMP). This plan was developed in respect to
workshop selecting criteria that stated in policies of process “PMM-015-
RIS-020 Plan Project Risk Management at Project Level”.
● Inputs to workshops includes but not limited to the following:
○ For risk workshop No. 2 at Initial Planning Stage, at least, the NWC
Project Manager shall use the following as inputs to extract and
derive the relevant risks at project level:
- The final business case documents.
- Guide to hierarchal sources of risks.
- Stakeholders (list, mapping, matrix analysis, positioning
analysis, etc.)
- Updated Portfolio Risk Register including to-date portfolio-level
action plan (PMF-015-RIS-017 Portfolio Risk Register).
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○ For Design Stage workshop and Construction Stage workshop the

Project Manager of Design Consultant / Contractor (who are
responsible of these workshops) shall use the following as inputs:
- Request of Proposal (RFP) in tendering documents.
- Project Contract and including technical and financial proposals
of the awarded Design Consultant / Contractor.
- Approved baselines (Scope, Schedule and Cost).
- Stakeholders (list, mapping, matrix analysis, positioning
analysis, etc.)
- Updated Risk Registers, including to-date action plans (PMF-
015-RIS-017 Portfolio Risk Register) and (PMF-015-RIS-001
Project Risk Register).
○ If any project member suggests additional input, it shall be reviewed
and assessed for adding.
● Use (PMF-015-RIS-011 Risk Workshop Preparation Handbook) to
develop and distribute the workshop agenda to invited individuals, with
any information considered necessary in order to ensure that the invited
individuals are well prepared to attend the workshop.
● Set a date for the Workshop.
● Carry out the workshop out on the set date, in accordance with the
developed agenda.
● Workshops shall include brainstorming to identify Risks, then refine the
brainstorming outputs by a peer review.
● Required outputs of the workshop are:
○ a formal workshop report (PMF-015-RIS-004 Risk Workshop Report
Example) which clearly includes:
- identified risks.
- qualitative risk analysis (PMM-015-RIS-040 Qualitative Risk
Analysis at Project Level).
- timeframe for response actions to identified risks that shall be
developed in (PMM-015-RIS-060 Plan Project Risk Responses
at Project Level).
○ Updated project risk register (PMF-015-RIS-001 Project Risk
Register).
● The Project risk register shall continuously be updated accordingly.
NWC Project Manager
Roles: Responsible:
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Consulted:
Director
Informed:
Director
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15.3.4.4 PMM-015-RIS-030-050 Identify Risks
Procedure: ● Identify project risks are performed:

○ continuously throughout the project lifecycle as risks can be
identified at any time of project lifecycle. Thus, risk identification shall
be scheduled on a regular basis. The frequency is also related to
project milestones and stage gate reviews.
○ mandatorily in every risk workshop.
● This process should be undertaken at a lower level at every project
review meeting such as:
○ daily site meetings between the Contractor and Consultant.
○ weekly site meetings between the NWC Project Manager, the
Consultant and the Contractor.
● Every team member shall report any identified project risk to NWC
Project Manager who is responsible to forward it to:
○ Design Consultant (at design stage)
○ Contractor risk team (at construction and Testing & Commissioning
stages)
○ Cluster Risk Section Head (at any other stage)
● When receives the reported risk, he makes an initial investigation to
determine the cause, likelihood of occurrence and potential
consequence (impact) of the risk.
● Record all identified risks formally in the Project Risk Register and score
using the Risk Scoring Scheme in the Project Risk Register.
● Describe each identified risk clearly. The following statement format shall
be used as a template to describe risks: (“As a result of <definite cause>,
<uncertain event> may occur, which would lead to <effect> on our
objectives”) to develop a clear risk statement (See guidelines below).
● The exercise of linking risk statements to impacted objectives is further
supported by the template Risk Breakdown Structure (RBS) in the
Project Risk Register.
● Assign a risk category from the RBS for each identified risk.
Relevant Stakeholders
Roles: Responsible:
NWC Project Manager
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NWC Project Manager

Informed:
PMO GM
Guidelines: ● Each risk statement must relate to (have a positive or negative impact
upon) at least one of the following objectives:
○ project objectives:
- Scope
- Schedule
- Cost
- Quality
○ business objectives:
- Customer Service
- Schedule
- Cost
- Health, Safety & Environment
- Reputation
- Business Resources
- Quality
● The following Tools can be used in Risk Identification:
○ Data Gathering Technique:
- Brainstorming
- Checklists
- Interviews
○ Data Analyzing Technique:
- Root Cause Analysis
- Assumption & Constraints Analysis
- SWOT analysis
○ Prompt Lists
○ Meetings / Workshops
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15.3.4.5 PMM-015-RIS-030-060 Transfer Risks to Design Consultant / Contractor

Through the Tender Documents
Procedure: ● Ensure the following items are integrated into the tender documents:
○ Updated NWC Project Management Plan (PMP) that includes an
updated Risk Management Plan Section.
○ Updated Project Risk Register highlighting the risks transferred to
the Design Consultant / Contractor.
● Review bidder technical proposals for inclusion of transferred risks.
Accountable: Cluster Supply Chain Manager

Design Consultant
Consulted:
Cluster Value engineering Specialist
Informed: Cluster Risk Section Head
15.4 PMM-015-RIS-040 Qualitative Risk Analysis at Project Level

15.4.1 Objective
The objective of this process is to define the probability and impact of the identified risks and
prioritize them based on analysis.
Perform qualitative risk analysis establishes the relative priorities for individual project risks for
plan risk treatment.
15.4.2 Policies
1. All identified risks must be subjected to formal qualitative analysis using the method
mandated in this section of the manual.
2. Perform qualitative risk analysis is performed regularly throughout project life cycle.
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15.4.3 Flowchart
Figure 15-6 PMM-015-RIS-040 Qualitative Risk Analysis at Project Level Flowchart
15.4.4 Procedures
15.4.4.1 PMM-015-RIS-040-020 Risk Analysis and Evaluation
Procedure: ● See (PMF-015-RIS-014 Examples of Risk Management Tools and

Techniques).
● Carry out a qualitative scoring of risk levels.
● To ensure a consistent, standardized approach in the relative scoring of
risks across all of NWC’s projects. Use the Risk Scoring Scheme in
(PMF-015-RIS-021 Risk Matrix) which used in the Project Risk Register.
● All identified risks shall be qualitatively assessed, with the assessment
to take into consideration:
○ the probability scoring on a range of 1 through 5.
○ the impact scoring on a range of 1 through 5.
Roles: Responsible:
Consulted:
NWC Project Manager
Cluster Risk Section Head (for design stage)
Supervision Consultant (for construction stage)
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15.5 PMM-015-RIS-050 Quantitative Risk Analysis at Project Level

15.5.1 Objective
The objective of this process is to calculate the impact/magnitude of the identified risks.
The Key Benefit is that it quantifies overall project risk exposure and it can also provide
additional quantitative risk information to support risk treatment planning.
Undertaking a robust analysis depends on the availability of high-quality data about individual
project risks and other sources of uncertainty, as well as a sound underlying project baseline
for scope , schedule and cost.
Quantitative risk analysis usually requires specialized risk software and expertise in the
development and interpretation of risk models. Moreover, it also consumes additional time and
cost.
15.5.2 Policies
1. Some risks above the risk tolerance expressed by top management shall be subjected
to formal quantitative analysis using the method mandated in this section of the
manual.
2. Perform quantitative risk analysis is not required for all projects. The decision to
perform quantitative risk analysis or not is to be made after performing the qualitative
risk analysis based on:
i. The strategic importance of the project.
ii. The significance of impact of the identified risks and subsequently the need to
reduce the contingency reserve.
iii. The need to decide whether to continue an ongoing project of a big value or
terminate it. The Go / No Go decisions may occur multiple times during project
life cycle.
iv. When formal authorities or top management requests for accurate information
about the probability of completing the project on schedule and within budget.
v. The availability of resources (Human and Technical) to perform the quantitative
analysis.
15.5.3 Flowchart
Figure 15-7 PMM-015-RIS-050 Quantitative Risk Analysis at Project Level Flowchart
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15.5.4 Procedures
15.5.4.1 PMM-015-RIS-050-010 Risk Scoring of Cost and Schedule Impacts
Procedure: ● Perform Quantitative Risk Analysis

● For Project Management, the initial output of Quantitative Risk Analysis
should be the calculation of Contingency Reserve.
● Cost and Schedule impact(s) should be quantitatively assessed, with the
results becoming inputs and updates to the cost and schedule plans for
their respective projects.
● Cost and Schedule impacts for projects and relevant business risks shall
be calculated using the (PMF-015-RIS-014 Examples of Risk
Management Tools and Techniques).
● Modeling for variations of the project costs and schedules may be
undertaken where appropriate, using modeling techniques such as
Monte Carlo or Latin Hypercube.
Roles: Responsible:
Consulted:
NWC Project Manager
Informed:
NWC Project Manager
15.6 PMM-015-RIS-060 Plan Risk Responses at Project Level

15.6.1 Objective
The objective of this process is to ensure a consistent approach to creation and approval of
action plans arising through formal Risk Management.
The Key Benefit is that it identifies appropriate methods to address overall project Risks.
Also Allocates resources and insert activities into project documents and Project Management
Plan as needed.
15.6.2 Policies
1. The NWC Project Manager is accountable for managing all risks on his project. He
can delegate ownership of action plans to appropriate members of the Project Team
(the “Risk Owners”), who are then responsible for implementing the action plans.
However, even though individual responsibilities have been delegated, the Project
Manager remains accountable. Accountability for project performance cannot be
delegated or transferred.
2. Project Manager responsibilities include the following:
● Delegation of action plans to appropriate “owners”, with their agreement.
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● Monitoring and reviewing of project risks and the associated action plans, in
conjunction with the “owners” on a regular basis (at least once a month) and
inclusion of the outcomes in their regular Project Manager progress reports.
● Escalation of concerns regarding risk levels to the Business Unit Construction
Director and to the supporting Technical Services staff in the Cluster.
● Management of the updates to the Project Risk Register for the project.
● Ensuring that the Consultant(s) and Contractor(s) engaged on the project are
made aware of NWC’s requirements for Risk Management, through inclusion
of the Project Management Manual and the Project Management Plan in the
tender document.
3. Risk Owners (can be anyone within the project team including Project Manager or
more senior management, where appropriate) are individuals within the team
accountable for the management of a particular risk and are responsible for:
● Implementing the Risk Management process for risks allocated to them.
● Evaluating risks and assigning action owners (in conjunction with the Project
Manager).
● Monitoring and supplying regular risk status reports to the Project Manager.
● Reporting new risks to the Cluster Risk Management Lead for addition to the
● Agreeing Risk Management responses with action owners.
● Monitoring the status of risks assigned to them and the associated
management plans.
● Escalating risks to a higher level where they feel they have insufficient authority
or ability to effectively manage a particular risk.
4. Risk Owners must have suitable knowledge and adequate authority in order to make
decisions and act appropriately to effectively manage risks assigned to them.
5. For the majority of risks, the NWC Project Manager will act as Risk Owner unless it is
outside his area of expertise or authority.
6. Staff should be trained in the importance of risk action ownership, and of effective
communication and collaboration in order to mitigate threats and to exploit
opportunities.
7. A contingency plan (or Fallback Plan) can be developed for implementation if the
selected strategy turns out not to be fully effective or if an accepted risk occurs.
8. Secondary Risks should also be identified and they are risks that arise as a direct
result of implementing a risk response.
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15.6.3 Flowchart
Figure 15-8 PMM-015-RIS-060 Plan Risk Responses at Project Level Flowchart
15.6.4 Procedures
15.6.4.1 PMM-015-RIS-060-010 Prepare Risk Response Plan
Procedure: ● After risk evaluation and analysis, each identified individual risk shall be
assigned:
○ A “Risk Owner” who is responsible for developing Risk Response
Plan.
○ One response plan which shall be implemented and monitored to
address the risk.
○ A “Response Plan Owner” who is responsible for managing the risk
response plan (developing, implementing and monitoring).
○ “Activity Owners” who shall be one activity owner for each activity in
the response plan. He shall be responsible for implementing the
activity.
● Response plan of every risk shall be documented in the Project Risk
Register.
● The objective of developing and implementing a response plan is to
reduce the likelihood and impact of negative risks (threats) and increase
them for positive risks (opportunities). This objective is achieved by:
○ Identifying targeted risk level for every risk that to be achieved after
implementing its response Plan. This shall be followed by that every
targeted risk level shall be assigned a:
- Required Response
- Response Urgency
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For threats, use table 1 in (PMF-015-RIS-020 Plan Risk Responses)

to identify the recommended required response and response
urgency that is required for every risk response plan.
○ Identifying a type for every response plan. Use table 2 in (PMF-015-
RIS-020 Plan Risk Responses) to identify best response plan type.
The identified type shall require specific behavior (strategy) to
implement. Use table 3 in (PMF-015-RIS-020 Plan Risk Responses)
to identify the corresponding behavior for every identified response
plan type.
Roles: Responsible: Risk Owner

Consulted:
Action owner
Informed:
NWC Project Manager
15.6.4.2 PMM-015-RIS-060-020 Include Risk Response Activities in the Design
Schedule
Procedure: ● The Design Consultant shall include relevant risk response activities in
his schedule for Design.
● The submitted schedule by Design Consultant shall be reviewed and
approved by Cluster Scheduling Section Head ensuring the inclusion of
risk mitigation activities.
● Records of document approval/rejection must be retained in the Project
Filing System by the Cluster Document Control Section Head.

Consulted:
Informed:
NWC Project Manager
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15.6.4.3 PMM-015-RIS-060-030 Include Risk Response Activities in the Construction

Schedule Submitted by Contractor
Procedure: ● The Contractor shall include relevant risk response activities in his
schedule for Construction.
● The submitted schedule by Contractor shall be reviewed and approved
by Cluster Scheduling Section Head ensuring the inclusion of risk
response activities.

Consulted:
Informed:
15.7 PMM-015-RIS-070 Implement Risk Responses at Project Level

15.7.1 Objective:
The Key Benefit of “Implement Risk Responses” process is that it ensures that agreed-upon
risk responses are executed as planned in order to address overall project risk exposure,
minimize the threats and maximize the opportunities.
Implementation of the risk Responses performed throughout the project life cycle.
15.7.2 Policies:
1. The following documents shall be taken into consideration during implementation of
risk response:
● Lessons learned register
● Project Risk Register
● Risk Report
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15.7.3 Flowchart
Figure 15-9 PMM-015-RIS-070 Implement Risk Responses at Project Level Flowchart
15.7.4 Procedures
15.7.4.1 PMM-015-RIS-070-020 Conduct Risk Response According to the Approved
Risk Response Plan
Procedure: ● The Design Consultant / Contractor / NWC Project Team shall perform
the planned risk responses following the approved risk response
schedule.
● Implementing every planned risk response action shall be led by the
action owner.
● The action owner shall report implementation progress to his Project
Manager who ultimately shall report and discuss it to NWC Project
Manager in the weekly progress meeting.
● The responsibility for the:
○ Actual realization of the added benefits.
○ Omission of unnecessary costs.
○ Treatment/mitigation of the specified Risks
will reside with the respective Risk Owner and their identified Action
Owners with ultimate responsibility residing with the Project Manager.
● Consider any further risks.
Design Consultant
Roles: Responsible:
Contractor
NWC Projects Team
Consulted:
Informed:
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15.8 PMM-015-RIS-080 Monitor Risk Responses at Project Level

15.8.1 Objective
The objective of this process is to assure the completion (effectiveness and efficiency) of the
approved action plans being implemented under formal Risk Management.
The key Benefit is that it enables project decisions to be based on current information about
overall project risk exposure.
15.8.2 Policies
1. All risk owners are responsible for reporting their agreed follow-up actions to the NWC
Project Manager, on a monthly basis as an absolute minimum.
risk management performance based on the NWC Project Management Plan and the
supporting project risk register as criteria for satisfactory performance. Stopping shall
be applied only through formal notice.
3. Stopped works to be resumed only upon approval by NWC of appropriate corrective
and preventive actions proposed by the party and accepted by NWC.
risk management performance will not be accepted as grounds for a claim and may
be counter-claimed (i.e. penalized) by NWC if there is a consequential loss.
5. All Project Risk Registers are subject to periodic audits.
6. Risks must be reported in the single and consistent manner mandated by this manual.
Business Unit Construction Director have responsibility to consolidate risks from
project level up to the level of the program under their direct management.
7. Risk responses are a vital subject in stage gate reviews, as the project moves from
one phase to the next in its lifecycle, and especially of lessons learned. The registers
must be kept up-to-date for each review and more frequently for each monthly
progress report.
8. The lessons learned must be recycled into the business in order to achieve continual
improvement, by recognizing risk repetition, asset designs and overall management
processes.
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15.8.3 Flowchart
Figure 15-10 PMM-015-RIS-080 Monitor Risk Responses at Project Level Flowchart
15.8.4 Procedures
15.8.4.1 PMM-015-RIS-080-010 Monitor Project Risks
Procedure: ● Through project life cycle, monitor project risks through the following:
○ Monitoring the implementation of agreed upon risk response plan.
○ Tracking identified risks.
○ Evaluating risk process effectiveness through the project.
○ Identifying and analyzing new risks.
● This procedure enables project decisions to be based on current
information about overall project risk exposure and individual project
risks.
● The updated project risk register shall be submitted monthly to PMO GM
for review.
Roles: Responsible:
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NWC Project Manager

Informed:
PMO GM
15.8.4.2 PMM-015-RIS-080-020 Risk Review Through Stage Gate Review Process
Procedure: ● Every stage gate review shall include checking risks status through
Roles: Responsible: Business Unit Construction Director

NWC Project Manager
Consulted:
15.8.4.3 PMM-015-RIS-080-030 Close the Risk Register
Procedure: ● Each Design Consultant / Contractor shall submit his own updated
Project Risk Register at the end of Design stage/Handover and Closeout
Stage.
● This activity is carried out in support of (PMM-016-PRO-100 Contract
Closure) process.
● The updated Risk register shall be submitted monthly to PMO GM for
review.
Roles: Responsible:
Design Consultant
Contractor

Informed:
PMO GM
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Guidelines: ● The information contained within the Project Risk Register will be
updated to reflect:
○ The fact that the risk was closed
○ Date when the risk was closed
○ Why the risk was closed
○ If any residual or emerging risks were identified, and what those
risks were.
○ Effectiveness of the response plan (succeed, failed, partial success)
15.8.4.4 PMM-015-RIS-080-040 Capture Lessons Learned for Future Risk

Management
Procedure: ● Formal capture of lessons learned is recorded using the (PMF-007-INT-

020 Lessons Learned Register) and (PMF-007-INT-021 Lessons
Learned Report).
Roles: Responsible:
Consulted:
Informed: Continuous Improvement Lead

The table below identifies the KPIs of Project Risk Management. The NWC Project Manager is
Table 15-1 Project Risk Management KPIs

Detail Measurement
missing or overdue Risk
Timely Risk workshop reports in the
1 Monthly 3 6 >6
workshop reports cluster against the
agreed schedule of
workshops
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Detail Measurement
Timely completion late or overdue Risk
of risk response response actions that
2 actions recorded in recorded in the project Monthly 0 3 >3
the project Risk risk register in the
register project against the
recorded action date.
Stage Gate Review
stage gate reviews that
failures due to
3 fails in the cluster due to Quarterly 0 2 >2
unsatisfactory Risk
unsatisfactory Risk
Management
management.
15.10 Attachments
RIS Project Risk Management).
Table 15-2 Project Risk Management forms, templates and guidelines
Document No. Title
PMF-015-RIS-001 Project Risk Register
PMF-015-RIS-004 Risk Workshop Report Example
PMF-015-RIS-005 Project Stakeholder Mapping Guidelines
PMF-015-RIS-007 Stakeholder Map Example
PMF-015-RIS-008 Stakeholder Positioning Analysis
PMF-015-RIS-011 Risk Workshop Preparation Handbook
PMF-015-RIS-013 Guide to Hierarchical Sources of Risk
PMF-015-RIS-014 Examples of Risk Management Tools and Techniques
PMF-015-RIS-015 Risk Register Review Checklist
PMF-015-RIS-016 List of Potential Stakeholders
PMF-015-RIS-017 Portfolio Risk Register
PMF-015-RIS-018 Stakeholders Register
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Document No. Title
PMF-015-RIS-019 Stakeholders-Project Interface Examples
PMF-015-RIS-020 Plan Risk Responses
PMF-015-RIS-021 Risk Probability and Impact Matrix
PMF-015-RIS-022 Project Risk Management Plan Guidelines
PMF-015-RIS-023 Risk Elements Checklist
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Section 16 - Project Procurement Management
Section 16 - Project Procurement

Management
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History Page

12/01
● The process “PMM-016-PRO-010 Plan Purchases and Acquisitions at Portfolio
Level” is revised.
● The process “PMM-016-PRO-020 Plan Project Procurement Management” is
elaborated.
● The process “PMM-016-PRO-025 Acquire Project Land” is added.
● The process “PMM-016-PRO-030 Prepare Tender Documents” is elaborated.
● The process “PMM-016-PRO-040 Select a Bidder” is elaborated.
● The process “PMM-014-PRO-050 Site Handover to Contractor and Consultant Work
Change Commencement” is transferred to Integration section and revised.
Description
● The process “PMM-014-PRO-060 Conduct Project Kick Off Meeting” is transferred
to Integration section and revised.
● The process “PMM-016-PRO-070 Contract Administration” is revised.
● The process “PMM-016-PRO-080 Suspend and Resume Project” is revised.
● The process “PMM-016-PRO-085 Change Project Status from Partial Suspension
to Total Suspension” is added.
● The process “PMM-016-PRO-090 Withdraw Project” is elaborated.
● The process “PMM-016-PRO-100 Contract Closure” is revised.
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06/02
This section is developed as an update to “Procurement” section in first version the

● Adding Project Procurement Strategy Form from Mashroat White Book for
Multiple Package Projects
● Adding the following templates and forms from Mashroat White Book:
○ Performance Bond Register Template
○ Insurance Register Template
○ Warranty Register Template
○ Requisition for Tendering Form
○ Requisition for Tendering Checklist
● Adding the following guidelines from Mashroat White Book:
○ Requisition for Tendering Guidelines
Change ○ Contents of ITT package Guidelines
Description
● Adding Procedure and agenda for pre-tender meeting/conference.
● Adding list of items to be addressed during the pre-tender site visit.
● Adding guidelines, checklists and template for bidder selection, evaluation and
scoring.
● Adding process and agenda items for kickoff meeting.
● Adding process for site handover to Contractor.
● Adding list of items to be checked in payment applications.
● Adding process for project suspension and resumption.
● Adding process for project withdrawal.
● Adding checklist templates for initial and final acceptance.
● Updating responsibilities according to NWC organization charts.
● Creating new flowcharts for processes and procedures.
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16 Project Procurement Management

The subject of this particular section of the Project Management Manual (PMM) is Project Procurement
Management.
The alternative delivery methods for a project include:
● Design Bid Build: The Project Design & Build stages are executed independently and by separate
Contractors, after competitive tendering. The Build stage follows the completion of the Design
stage, on which it is based. This is widely known as the “traditional” method.
● Design & Build: Both the design and construction of a project are procured from the same
organization (i.e. a Contractor with in-house design capability).
The high-level process map for Project Procurement Management is illustrated below in Figure 16-1:
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Figure 16-1 High-Level Process Map for Project Procurement Management
The process described in this section is intended to ensure compliance with current versions of the
following NWC internal documents Supply Management Policy and Procedure Manual.
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16.1 PMM-016-PRO-010 Plan Purchases and Acquisitions at Portfolio Level

16.1.1 Objective
The objective of this process is to make strategic decisions that will determine the tactical
approaches to be implemented at the program level or project level. Planning Purchases and
Acquisitions is a strategic exercise performed for the entire Five-Year Projects Portfolio Plan.
For example, when the following is needed for one or more projects:
● items or materials in high-volume
● items or materials in long-lead
● specialty items
may they best be purchased directly by NWC under favorable terms and then provided to the
Contractors according to contractual provisions.
A further example lies in the strategic direction that identifies the manner in which second
parties are chosen for projects delivery. From the perspective of execution of projects, this may
include joint ventures.
16.1.2 Policies
1. Strategic procurement initiatives, such as materials to be provided by NWC and
partnership arrangements, must be approved in advance, against a well-written
business case before they can be implemented through the Project Management
Manual.
2. The manner in which strategic procurement initiatives are planned to be implemented
on individual projects must be documented as project-level procurement assumptions
in the Portfolio Risk Register. This is the starting point for NWC Project Manager when
he is appointed to manage the individual project. There may be considerable elapsed
time between securing the project budget and starting the project; So, it is vital that
all procurement related assumptions are clearly documented early in the Portfolio Risk
Register.
3. The portfolio material requirements and portfolio contracting requirements must be
routinely reviewed every six months as a minimum and may be reviewed additionally
in reaction to marketplace events, such as sharp changes in material prices or the
entry of new Contractors into the Saudi engineering and construction sector.
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16.1.3 Flowchart
Figure 16-2 PMM-PRO-010 Plan Purchases and Acquisitions at Portfolio Level Flowchart
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16.1.4 Procedures
16.1.4.1 PMM-016-PRO-010-010 Summarize the Requirements of Portfolio High
Volume, Long Lead and Special Materials
Procedure: ● Review the Five-Year Projects Portfolio Plan to identify the planned
projects.
● Summarize the Requirements of Portfolio:
○ High Volume Materials
○ Long Lead Materials
○ Special Materials.
● Add the new material requirements of planned projects (i.e. estimated
quantities and costs) to the material requirements of the ongoing projects
which are not awarded to Contractors yet.
● Refer to the following to support the exercise:
○ Approved Suppliers List
○ Material Requirements Database
○ Cost Database
○ Portfolio Risk Register
● Produce a summary report for each cluster showing the requirements of
different materials, highlighting the high-volume items, the long lead
items and the specialty items.
● The “Clusters Projects Support Team” shall sum the total material (high-
volume, long lead and specialty items) requirements list for the whole
Portfolio and forward to the Portfolios Strategic Planning & Spending
Efficiency Director.
● The Portfolios Strategic Planning & Spending Efficiency Director shall
review the material (high-volume, long lead and specialty items)
requirements list and forward to Capital Projects Strategic Planning GM
who shall review and forward it to the Supply Chain GM.
Cluster Quantity Survey Lead
Roles: Responsible:
Consulted:
Director
Informed:
Director
Supply Chain GM
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16.1.4.2 PMM-016-PRO-010-020 Summarize the Portfolio Contracting Requirements
Procedure: ● Review the Five-Year Projects Portfolio Plan to identify the planned
projects.
● Refer to the following to support the exercise:
○ Approved Suppliers List.
○ Contractor Evaluation Reports, Consultant Evaluation Reports, and
Portfolio Risk Register.
● Produce a summary report of the cluster contracting requirements,
highlighting the number and nature of different contract types, any
perceived shortages in local capacity and any overseas options required
to supplement local resources. Submit the report to the Portfolios
Strategic Planning & Spending Efficiency Director.
● The Portfolios Strategic Planning & Spending Efficiency Director shall
review and assemble the summary reports of the contracting
requirements received from clusters, and produce a companywide report
and forward the report to the Supply Chain GM and Capital Projects
Strategic Planning GM.
Roles: Responsible:
Consulted:
Supply Chain GM
Director
Cluster Projects GM
Informed:
Director
Supply Chain GM
16.1.4.3 PMM-016-PRO-010-030 Review the Reports for Strategic Recommendations
Procedure: ● Since strategic procurement decisions may significantly affect the overall
performance and cash flow of the business, the requirements reports
must be reviewed by the related senior management team of the
business.
● The senior management team meets to discuss the reports’
recommendations regarding which material will be included in
construction’s scopes and which material will be purchased directly by
NWC.
● All strategic decisions made during the meeting affecting project
procurement methods are communicated to the Clusters.
Roles: Responsible:
Shared Services VP
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Cluster Senior GMs
Consulted:
Cluster Supply Chain Managers
Supply Chain GM
Cluster Senior GMs
Informed:
Cluster Supply Chain Managers
Supply Chain GM
16.1.4.4 PMM-016-PRO-010-040 Update the Portfolio Risk Register
Procedure: ● The Portfolio Risk Register shall be updated accordingly by the Risk
Management lead defining all required related actions and shall be
communicated to all clusters.
● Ensure that each risk has an action plan and that action plan owners are
made aware of their action requirements and are kept under review for
the implementation period set by the senior management team.
● Some procurement-related action plans may require additional value
management workshops. This must be clearly stated in the register so
not to be overlooked later in the design stages of the project and before
procurement decisions are finalized for the project.
Monitoring & Strategic Reporting Lead
Roles: Responsible:
Consulted:
Informed:
Cluster Projects GM
16.2 PMM-016-PRO-020 Plan Project Procurement Management
16.2.1 Objective
The objective of this process is to plan how NWC shall enter in a contractual relationship with
a second party. It includes describing the activities that Capital Projects Department shall
perform before, during and after the contract duration.
It also targets to standardize the relationship with the relevant stakeholders (mainly Supply
Chain department).
16.2.2 Policies
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1. The “Procurement Management Plan” must be internally reviewed and approved as

part of the integrated Project Management Plan, and not as a standalone document.
2. The externally contracted scope must be defined in the “Procurement Management
Plan” in terms of works sections, stages, milestones and contract deliverables, further
detailed in terms of quantity, applicable specifications, quality, delivery period and
other pertinent details, for every works package. This level of analysis also defines
the boundaries and interfaces between work packages, sets up the forecast resource
requirements and specifies the satisfactory completion criteria for each works
package.
3. The contracted activities described in the “Procurement Management Plan” are
defined in terms of the resource requirements necessary for the execution of every
specific activity. Estimates should be included for people, plant and equipment and
material resources. The material requirements in particular, need to be considered in
terms of lead-times and procurement strategy.
4. The relevant cost estimate produced in support of project planning at this stage must
be used to ensure that the allocated project budget is adequate and to evaluate the
reasonableness of proposed bids later on during the tendering stage. The cost
estimate, covering all the activities of a bid, together with the project schedule,
provides information in respect to the planned budget expenditure over time (i.e. cash-
flow forecast).
5. Expert technical advice is used during the procurement process for the assessment
of specific issues which arise during the process. For instance, expert procurement
advice could be needed for the evaluation of complex technical submissions or for the
formulation of bespoke complex terms and condition of contract for specific large
and/or complex projects. The Project Manager must make sure that he consults with
the relevant experts whilst he is developing the Project Management Plan.
6. Tendering requirements should:
● Specify the documentation the suppliers should include with their proposals,
like key personnel CVs, company experience/contract history, preliminary bill
of materials, drawings, products data and pricing data.
● Specify the evaluation method and criteria, listing the criteria in order of
importance, with the highest listed first (but not showing the weighting factors).
7. Qualified vendors in NWC Supply Chain system are the potential vendors to the right
category and class, however new vendors may be invited subject to qualification prior
to awarding.
8. The formal process requires that all purchasing decisions are consistently
documented and recorded, in relation to project requirements that can best be met by
the direct contracting of external suppliers.
9. The plan must state the criteria for selecting suppliers from the Approved Suppliers
List and the criteria for tender evaluation. The actual expression of interest,
prequalification and tendering activities will be managed by Supply Chain department,
according to the Supply Management Policy and Procedure Manual, but there must
be a planned level of technical input and technical evaluation support provided by the
Project Team.
10. Selection criteria must be included as a part of the “Procurement Management Plan”.
These criteria are developed and used to rate or score bidder proposals objectively.
The selection criteria can be limited to the price alone, when the required product or
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service is readily available from a number of approved suppliers, or there can be a

number of diverse criteria to support the selection of complex products and services.
Such criteria include the following (see also the NWC Supply Management Policy and
Procedure Manual Section 6 – Vendor Management):
● Understanding of needs: How well a supplier’s proposal addresses the
procurement statement of works
● Life-cycle cost: The proposal offering the best (lowest) ownership cost
(purchase/construction cost plus operating costs).
● Technical capability: The supplier either has or can be reasonably expected to
acquire the technical skills and knowledge required
● Risk: How much of the risk is included in the statement of works how much risk
will be transferred to the supplier and what are the supplier’s risk mitigation
skills.
● Management approach: The supplier either has or can reasonably be
expected to develop or acquire the necessary management capability,
processes and procedures.
● Technical approach: The supplier proposed technical methodologies,
techniques, solutions and services meet the procurement document
requirements or are likely to provide more, or less, than what is required.
● Warranties: The suppliers’ proposals regarding warranties for their finished
works
● Financial capacity: The supplier has or is reasonably expected to obtain the
financial resources required for the execution of the procured works
● Business size and type: The supplier has the necessary production capacity,
in terms of classification/license level to bid for works and is of the appropriate
expertise/business field category to meet the requirements of the procurement
document.
● Past performance of bidders: The past works experience of the suppliers
● References: Available references for past performance from clients verifying
the suppliers” work experience and probable compliance with the requirements
of the procurement document.
● Intellectual property rights: Assertion of the suppliers’ intellectual rights on the
works, services, processes, or on the products produced, to be used for the
execution of the procurement document works.
● Proprietary rights: Assertion of the suppliers’ proprietary rights on the work
processes or services they will use or on the products produced, to be used
for the execution of the procurement document works.
11. A project delivery method analysis is required to be carried out to deal with the
selection of the best strategy for executing a project from the procurement stage to
hand-over. The decisions taken at this stage determine the best suited method to
deliver the project works, or portions of it.
construction) including Procurement Management Plan Section for the project. These
management plans must comply with the Procurement management requirements
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defined in the NWC Project Management Plan and must be approved by NWC during
13. The Procurement Management Plans in PMPs of NWC, Design and Construction
16.2.3 Flowchart
Figure 16-3 PMM-016-PRO-020 Plan Project Procurement Management Flowchart
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16.2.4 Procedures
16.2.4.1 PMM-016-PRO-020-010 Develop the Procurement Management Plan Section
of the Project Management Plan

includes a dedicated section for Procurement management.
● Use (PMF-016-PRO-050 Procurement Management Plan Guidelines) as
a guideline to create NWC Procurement Management Plan.
● Develop the Project Procurement Strategy using (PMF-016-PRO-001
Project Procurement Strategy).
● Update the Project Procurement Section throughout the lifecycle with the
Roles: Responsible:
NWC Project Manager
Cluster Projects GM
Consulted:
Contract Manager
Informed:
Cluster Projects GM
Contract Manager
16.2.4.2 PMM-016-PRO-020-020 Approve the Procurement Management Plan Section
of Project Management Plan
Procedure: ● Review and Approve the Procurement Management Plan Section of

satisfactorily.
● Approve the submitted Project Procurement Management Plan Section.

Consulted:
NWC Project Manager
Cluster Projects GM
Contract Manager
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Informed:
NWC Project Manager
Cluster Projects GM
Contract Manager
16.2.4.3 PMM-016-PRO-020-030 Ensure Procurement Requirements and Technical

includes a dedicated section for Procurement management.
own Procurement Management Plan and must submit it during the
Management Plan.
proposals includes Procurement assessment criteria, which addresses:

Consulted:
16.2.4.4 PMM-016-PRO-020-040 Develop Project Procurement Management Plan

Section in the Project Design Management Plan
Procedure: ● Develop Project Procurement Management Plan Section in the Project

● Ensure that the Project Procurement Management Plan Section in the
Procurement Management Plan Section in the NWC Project
Management Plan.
Director about the development of the Project Procurement Management
Plan Section.
● Include the Project Procurement Management Plan Section in the
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NWC Project Manager

Consulted:
16.2.4.5 PMM-016-PRO-020-050 Ensure Procurement Requirements and Technical

Procurement Management Plan and must submit it during the
Management Plan.
proposals includes Procurement assessment criteria, which addresses:

Consulted:
16.2.4.6 PMM-016-PRO-020-060 Develop the Construction Procurement Management

Plan Section
Procedure: ● Develop Project Procurement Management Plan Section in the Project

● Ensure that the Project Procurement Management Plan Section in the
Procurement Management Plan Section in the NWC Project
Management Plan.
the development of the Project Procurement Management Plan Section.
● Include the Project Procurement Management Plan Section in the

NWC Project Manager
Consulted:
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16.3 PMM-016-PRO-025 Acquire Project Land

16.3.1 Objective
The objective of this process is to early acquire the project land before tendering for design to
lever the design accuracy by the Design Consultant.
16.3.2 Policies
1. Land acquisition must be completed before tendering for design.
16.3.3 Flowchart
Figure 16-4 PMM-016-PRO-025 Acquire Project Land
16.3.4 Procedures
16.3.4.1 PMM-016-PRO-025-010 Request for Land Acquisition
Procedure: ● Following the prepared land acquisition plan (PMF-007-INT-024 Land

Acquisition Strategy Form), NWC Project Manager shall request from
General Services Department to acquire the lands specified in the project
Business Case.
● NWC Project Manager shall closely support General Services
Department in the action of project land acquisition. He shall provide any
required information or documents that helps to acquire the land.

Cluster Projects GM
Consulted:
Informed: General Services GM
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Guidelines: ● Acquisition can be by:

○ acquiring a piece of land such as acquiring a governmental piece of
land.
○ having a permit to use a previously specified rout for Water Service
such as routs beside roads (right of way).
○ creating a new rout for NWC.
16.3.4.2 PMM-016-PRO-025-020 Receive the Land Acquisition Documents
Procedure: ● NWC Project Manager shall receive from General Services Department
the land acquisition documents.
● NWC Project Manager shall add these documents to the “Request for
Proposal” of the design tendering and the construction tendering.
● If land acquisition process had obstacles, NWC project manager shall
escalate the issue.
16.4 PMM-016-PRO-030 Prepare Tender Documents

16.4.1 Objective
The objective of this process is to ensure the properness of technical inputs from Projects
Departments to the existing NWC Supply Management procedures for prequalification and
tendering.
16.4.2 Policies
1. Every capital project must have a detailed Request for Proposal (RFP) based on an
approved Business Case. The RFP shall include but not limited to:
i. Approved Business Case (for Design projects and Construction projects)
ii. Project Scope (for Design projects and Construction projects)
iii. Design Drawings (for Construction projects)
iv. Specifications (as per Standard Specifications) (for construction projects)
v. Bill of Quantities (as per Standard BOQ) (for Construction projects)
vi. Project Level 1 Schedule (for Design projects and Construction projects)
vii. Class 4 Cost Estimate (for Design projects)
viii. Class 2 Cost Estimate (for Construction projects)
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ix. Special Conditions Deviation Request (if required) (for Design projects and
x. Land Acquisition (for Construction projects)
xi. Geotechnical Soil Report (for Construction projects)
xii. External Authorities Approvals (as applicable such as EIA) (for Design and
2. Every capital project must have a separate Purchase Requisition (PR).
3. Before forwarding tender documents to supply chain department, a Project Pre-
Tender Review Form must be filled and signed from related parties. It must be
included in the forwarded tender documents.
16.4.3 Flowchart
Figure 16-5 PMM-016-PRO-030 Prepare Tender Documents
16.4.4 Procedures
16.4.4.1 PMM-016-PRO-030-010 Prepare Request for Proposal (RFP) for Design or
Construction Tender
Procedure: ● The NWC Project Manager in collaboration with Cluster Technical

Service Manager shall prepare the RFP Package.
● Ensure the RFP Package is in line with the up-to-date NWC Project
Management Plan, including all applied approved changes.
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● The RFP Package shall include but not limited to (the minimum
requirements):
○ Approved Business Case (for Design projects, Construction projects
and Design & Build projects)
○ Project Scope (for Design projects, Construction projects and
Design & Build projects)
○ Design Drawings (for Construction projects and Design & Build
projects)
○ Specifications (as per Standard Specifications) (for construction
projects and Design & Build projects)
○ Bill of Quantities (as per Standard BOQ) (for Construction projects
○ Project Level 1 Schedule (for Design projects, Construction projects
○ Cost Estimate Class 4 (for Design projects)
○ Cost Estimate Class 3 (for Design & Build projects)
○ Cost Estimate Class 2 (for Construction projects)
○ Special Conditions Deviation Request (if required) (for Design
projects, Construction projects and Design & Build projects)
○ Land Acquisition (for Construction projects and Design & Build
projects)
○ Geotechnical Soil Report (for Construction projects and Design &
Build projects)
○ External Authorities Approvals (as applicable such as EIA) (for
Design projects, Construction projects and Design & Build projects)
● Every component of the RFP must, before consolidation at level cluster,
be separately:
○ Prepared
○ Reviewed
○ Approved
● Cluster Projects GM shall endorse the RFP using (PMF-016-PRO-008
RFP Approval Form) then raise it to the Technical Services GM for
approval.
● See (PMF-016-PRO-036 Tender for Construction Process Flow in
NWC Project Manager
Roles: Responsible:
Cluster Projects GM
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Consulted:
Technical Support Manager
16.4.4.2 PMM-016-PRO-030-020 Approve the Request for Proposal (RFP) for Design
or Construction Tender
Procedure: ● Review and approve the Request for Proposal (RFP) for Design or
Construction Tender within 7 days from request submission.
● Return the RFP to NWC Project Manager at cluster.
Roles: Responsible: Technical Services GM

Consulted:
Technical Support Manager
Supply Chain GM
16.4.4.3 PMM-016-PRO-030-023 Raise a Request to Tender without Budget

Reservation to P&TS VP
Procedure: ● Cluster Projects GM shall prepare a request to tender without Budget

Reservation to P&TS VP. The request shall include a consistent
justification to be accepted.
● Cluster Projects GM shall raise the request to Cluster Senior GM for
endorsement and raising to Project and Technical Services GM.
● Cluster Senior GM shall review, endorse and raise the request to Project
and Technical Services GM to raise it to CEO.
Cluster Projects GM
Roles: Responsible:
Cluster Senior GM
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Consulted:
16.4.4.4 PMM-016-PRO-030-026 Raise the Request for Tendering without Budget

Reservation to CEO
Procedure: ● Capital Projects & Technical Services VP shall review the request and
consult Projects GMs.
● Capital Projects & Technical Services VP shall endorse and raise the
request to CEO.

Cluster Projects GM
Consulted:
Cluster Senior GM
PMO GM
Informed: CEO
16.4.4.5 PMM-016-PRO-030-028 Approve the Request for Tendering without Budget

Reservation by BOD
Procedure: ● CEO shall review and transmit the request to Board of Directors.
● Board of Directors shall review and accept/reject the request.
CEO
Roles: Responsible:
Board of Directors
Accountable: CEO
Consulted: Capital Projects & Technical Services VP
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16.4.4.6 PMM-016-PRO-030-030 Prepare Purchase Requisition (PR) for Design or

Construction Tender
Procedure: ● NWC Project Manager shall ensure from Cluster Finance Department
that the financial liquidity is available.
● Cluster Projects GM and NWC Project Manager shall prepare the
Purchase Requisition (PR) attaching (PMF-016-PRO-005 PR Approval
Form) to reserve the project budget.
● Raise the Purchase Requisition (PR) to Cluster Senior GM.
● This procedure to be completed within 4 days from request approval.
NWC Project Manager
Roles: Responsible:
Cluster Projects GM
Consulted:
Cluster Finance GM
Cluster Senior GM
Informed:
16.4.4.7 PMM-016-PRO-030-040 Approve Purchase Requisition (PR) for Design or
Construction Tender
Procedure: ● The Cluster Senior GM shall give 1st approval to the request and raise it
to authorized person within 2 days.
● The authorized person as per latest approved authority matrix shall
review and approve the Purchase Requisition (PR) within 2 days.
Cluster Senior GM
Roles: Responsible:
Authorized Person
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16.4.4.8 PMM-016-PRO-030-050 Develop the Project Pre-Tender Review Form before

Tendering
Procedure: ● For construction projects and after and after:

○ receiving the PR approval (budget reservation)
OR
○ receiving BOD approval to tender without budget reservation
the following departments shall fill and sign the form (PMF-016-PRO-039
Project Pre-Tender Review Form):
○ Cluster Technical Services department
○ Cluster Projects Delivery department
○ Cluster Asset Management & Operation Excellence department
● This procedure is not required design projects.
Roles: Responsible:
Director
Consulted:
16.4.4.9 PMM-016-PRO-030-060 Forward Purchase Requisition (PR) and its

attachments for Tendering
Procedure: ● The authorized person shall forward the Purchase Requisition (PR) and
its attachments which includes but not limited to:
○ PR approval form
○ Request for Proposal RFP
○ Project Pre-Tender Review Form
to HQ/Cluster Supply Chain GM (as per authority) for tendering.
● See (PMF-016-PRO-036 Tender for Construction Process Flow in

Cluster Senior GM
Consulted:
Cluster Projects GM
Informed:
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16.5 PMM-016-PRO-040 Select a Bidder

16.5.1 Objective
The objective of this process is to ensure the inclusion of provided technical input and provision
of technical evaluation support to the existing NWC Supply Management procedures for
proposal evaluations, preferred bidder identification and contract negotiation.
16.5.2 Policies
1. In cooperation with Cluster Supply Chain Department and Supply Chain department,
the Project Manager shall ensure that expressions of interest, prequalification and
tendering are carried out with relevant technical input and technical evaluation
support. Contracts must not be placed without such input and support.
2. Detailed procedures and processes, for the selection of bidders, can be found in the
NWC Supply Management Policy and Procedures Manual. The purpose of the
following guidelines is to address the specific items related Projects & Technical
Services department.
3. The bidder proposals are prepared in response to the tender documents and are the
basis of the specific bidder evaluation for the selection of one or more successful
bidders.
4. For complex projects and Procurement Management Plans where the bidder
selection will be based on responses to predefined weighted criteria, a formal
standardized evaluation review process should be used. The specifically set-up
evaluation team will base their selection on this process. On completion of the
evaluation, an Evaluation Report will be produced stating the evaluation results and
the most favorable bid.
5. The technical and commercial proposals of each bidder are evaluated separately. The
bidder capabilities are evaluated first to eliminate the bidders that unable to meet the
basic procurement requirement leaving a select few for the technical and commercial
evaluation, thus saving time and effort for the proposal review team and the interested
bidders.
6. The commercial review committee should include members from the Projects
department to participate in the commercial review process.
7. Contract is a legally binding document, subject to remedy in the courts describing the
obligations and the rights of the two contracted parties.
9. The components in a contract vary from contract to contract but they generally,
include:
● Statement of works or Deliverables Schedule
● Project Schedule Baseline
● Performance reporting requirements
● Contract Period
● Roles and Responsibilities Matrix
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● Contract Works Location

● Contract Price and Pricing Schedules
● Payment Terms
● Inspection and Acceptance criteria
● Warranties
● Limitations of liability
● Penalties and Incentives
● Insurance and Performance Bonds
● Subcontractor approval procedure
● Variation Management procedure
● Alternative Dispute Resolution mechanism. These can be decided and agreed
at pre-Tender stage as part of the Project Management Plan.
● Contract Termination mechanism
● Legal Jurisdiction
16.5.3 Flowchart
Figure 16-6 PMM-016-PRO-040 Select a Bidder Flowchart
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16.5.4 Procedures
16.5.4.1 PMM-016-PRO-040-003 Participate in Pre-Tender Meeting
Procedure: ● For Complex project, participate in Pre-Tender meeting (for projects

above 200M SAR or special projects) to explain the project to potential
bidders.
NWC Project Manager
Roles: Responsible:
Consulted:
Design Consultant (If the project is designed)
Supply Chain GM
Informed: Supply Chain GM
16.5.4.2 PMM-016-PRO-040-006 Participate in Site Visits and Job Explanation Meeting
Procedure: ● Arrange and participate in site visit and walkthroughs to explain the
scope of project and its conditions.
● Review the Job Explanation meeting Agenda and provide comments.
● Participate in the Job Explanation meeting and provide responses to
bidder’s questions.
● If required, group bidder requests for information and answers, for
presentation at the Bid Conference.
● Receive and review the conference minutes.
● Refer to (PMF-016-PRO-036 Tender for Construction Process Flow in
Governance Document in Governance Document).
NWC Project Manager
Roles: Responsible:
Consulted:
Supply Chain GM
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Guidelines: ● Items to be described during site visit:

○ Access routes to and from the work area
○ Safety requirements and potential hazards
○ Other existing construction roads
○ Existing camps or the location of camps for the work under the
Contract
○ Location of laydown and storage areas if designated at that time
○ Support Industry locations
○ Location of survey stations, bore holes, test pits, etc.
○ Connecting points for electrical power, water, compressed air, etc.,
○ Location of features which could obstruct or affect the performance
of the work under the Contract
○ Location of other features of general information to Tenderers
16.5.4.3 PMM-016-PRO-040-008 Receive and Respond to Bidder Questions
Procedure: ● After the HQ/Cluster Supply Chain GM (as per authority):

○ Finalizes tender Documents.
○ Sends invitation to bid (ITB) to the prequalified Contractors:
○ Receives Bidders’ requests for information and Questions.
○ Sends the technical questions to Cluster Technical Services Director
and Project Manager for review and response.
The Cluster Technical Services Director and NWC Project Manager
shall:
○ Respond to Bidder requests for information and Questions.
○ Return it to supply chain department.
NWC Project Manager
Roles: Responsible:
Consulted:
Supply Chain GM
Informed:
Supply Chain GM
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16.5.4.4 PMM-016-PRO-040-010 Form Technical Evaluation Committee
Procedure: ● The Cluster Senior GM shall form the technical evaluation committee for
all projects except:
○ Projects > 100M SAR.
○ Treatment Plant Projects.
which shall be formed by Capital Projects & Technical Services VP.
● The committee formation to be completed within 7 days from tender
schedule preparation.
Capital Projects & Technical Services VP / Cluster Senior
Roles: Responsible:
GM
Accountable:
GM
Cluster Projects GM
Consulted:
Capital Projects & Technical Services GMs
Supply Chain GM
Informed:
Supply Chain GM
16.5.4.5 PMM-016-PRO-040-020 Evaluate Technical Proposal
Procedure: ● Check Tender Submission Compliance.

● Perform Initial Evaluation for Short Listing
● Evaluate bidders technically.
● During evaluation, issue Tender Clarifications to Tenderers when
required and register all clarifications.
● Recommend and rank bidders.
● Raise Technical Evaluation Report within 14 days to Capital Projects &
Technical Services VP / Cluster Senior GM for approval using (PMF-016-
PRO-012 Contractor Technical Bid Evaluation Form)
● For the detailed process of evaluating and selecting bidders, refer to the
NWC Supply Management Manual and (PMF-016-PRO-036 Tender for
Construction Process Flow in Governance Document).
Roles: Responsible: Technical Evaluation Committee

Accountable:
GM
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NWC Project Manager

Consulted:
Supply Chain GM
Supply Chain GM
Informed:
Cluster Senior GM
Guidelines: ● Evaluation Criteria and Scoring Guidelines:
○ Creating a sufficient number of evaluation criteria relating to the
aspects of the proposal that are considered particularly important
and can be used to measure the acceptability or otherwise of the
Tenderers response to a particular ITT Document Tender Form.
○ Identify those Forms that are considered as critical to the successful
delivery of the Agreement. These criteria shall be considered as a
key criterion.
○ Determine based on the NWC priority, the weighting between
Commercial and Technical Evaluations.
16.5.4.6 PMM-016-PRO-040-030 Approve Technical Evaluation
Procedure: ● The Cluster Senior GM shall approve the technical evaluation report for
all projects except:
○ Projects > 100M SAR.
○ Treatment Plant Projects.
which shall be approved by Capital Projects & Technical Services VP.
● The technical evaluation report approval to be completed within 7 days.
● Refer (PMF-016-PRO-036 Tender for Construction Process Flow in
Roles: Responsible:
GM
Accountable:
GM
Consulted:
Supply Chain GM
Informed:
Supply Chain GM
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16.5.4.7 PMM-016-PRO-040-040 Participate in Commercial Evaluation
Procedure: ● The Cluster projects department shall nominate members to be part of

the commercial evaluation committee to participate in commercial
evaluation process which shall be completed within 7 days after technical
evaluation approval and then raised to Negotiation & Award department.
● Refer (PMF-016-PRO-036 Tender for Construction Process Flow in
CP&TS Nominees for the Commercial Evaluation
Roles: Responsible:
Committee
NWC Project Manager
Consulted:
Supply Chain GM
16.5.4.8 PMM-016-PRO-040-050 Approve the Selected Bidder
Procedure: ● After Negotiation & Award recommendation, the authorized person shall
approve the recommendations of negation and award within 5 days.
● For MEWA projects upload and get approval through ITIMAD platform.
● For NWC projects the HQ/Cluster Supply Chain GM (as per authority)
shall get approval for the Selected Bidder and Issue the Purchase Order
(PO) within 5 days from approving the Negotiation & Award Committee
recommendation.
● Proceed with contract issuance as per (PMF-016-PRO-036 Tender for
Construction Process Flow in Governance Document).

Consulted:
Supply Chain GM
authority)
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16.6 PMM-016-PRO-070 Contract Administration

16.6.1 Objective
The objective of this process is to describe the management of the contractual relationship
between the Consultant/Contractor and NWC, making sure that both parties fulfil their
contractual obligations to each other.
16.6.2 Policies
1. NWC Project Manager must be aware of all project contract provisions.
2. The project management team must be aware of the legal implications of their
decisions when administering the contract and directing the second parties.
3. On projects with multiple providers it is important that the project management team
can effectively manage the interfaces between them.
4. The Project site or sites are to be handed over to the Contractor as per the Contract
Conditions. The site handover date is to be considered the project start date.
5. The required performance of the second parties is described in the contract
documents and to be documented in progress reports and the payment applications
submitted by the suppliers.
6. The second party responsibility covers works executed by his subcontractors,
vendors, suppliers and testing facilities.
7. A progress reports must be submitted on monthly basis in accordance with the
contract provisions and are submitted to the NWC Project Manager or his official
representative.
8. NWC have the right to review, analyze and assess the any every project document
by NWC team or any second or third party.
9. Variation Request approvals can be referred to as Variation Orders and constitute
agreed changes to the contract scope, cost and/or schedule. All Variation Orders
should be requested and approved in writing. Verbal requests or approvals are
completely not prohibited and shall not be considered on any project activity.
10. The (PMM-007-INT-060 Variation Control) process which represents a Contract
Change Control System which defines the procedures to be utilized when contract
modifications are required.
11. The objective of the performance review is to measure:
i. Second party performance failures or successes.
ii. Progress with respect to the procurement statement of work.
iii. Any contract non-compliance.
iv. The ability of a second party to deliver the contracted works and meet his
contractual obligations.
12. It is advisable that the reviews are carried out by the Supervision Consultant or the
NWC Project Management Team, who are familiar with the project requirements. The
performance review and identification are to be performed and forwarded to the
Supply Chain Management department as per the NWC Supply Management Policy
and Procedure Manual.
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13. Inspections, audits and surveillances are to be carried out on second party processes
and contractual deliverables.
14. Performance reporting is to be carried out and analyzed, so that the Project
Management is provided with information on how well the second party is performing
against his contractual obligations. The second party performance is measured
against certain criteria covering technical and quality compliance, works progress,
supplier earned value, manpower usage and material delivery. Performance reporting
must include forecasting and the use of performance trends.
15. A resource calendar must be considered in all project schedules (whether by NWC or
second parties). The resource calendar must adequately record the resource
availability and utilization schedule and show the dates the various resources required
for the execution of the Project Works are becoming available and the dates they may
be active or idle.
16. Payments to the second parties to be processed through NWC Financial System
against Approved Payment Certificates raised by the Project Management Team for
the value of executed and accepted works on monthly basis.
17. The second party accounting department should be able to accommodate the contract
requirements in respect to the format and timing of the payment applications and
invoices as well as for documentation like cost breakdowns, back-up information, etc.
18. In dispute cases, claims must be administered in accordance with the contract
conditions. Dispute resolution through negotiation is always the preferred option. If no
agreement reached by negotiation, Alternative Dispute Resolution (ADR) procedure
shall be implemented if it is stated in the contract.
19. The NWC project team and second party team must perform proper document
controlling for all project documents.
20. Project Information that required by NWC project team or second party team must be
properly managed as per PMM processes and the contract conditions. Examples of
these information are daily logs for Progress, daily Labor and Plant Returns, Second
Party Performance Information, Progress Photos, Disputes, Payment Requests,
Information Requests etc. When NWC project team and or its representative requests
for any of this information from the second party, the second party must immediately
provide the requested information.
21. Enterprise Content Management System (ECMS) is to be used to store, retrieve
and/or archive all the documentation created during the life cycle of a Project. Access
with controlled authorities to be granted to the key members of NWC and/or second
party project management teams.
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16.6.3 Flowchart
Figure 16-7 PMM-016-PRO-070 Contract Administration Flowchart
16.6.4 Procedures
16.6.4.1 PMM-016-PRO-070-010 Design Consultant / Contractor Performance Review
and Reporting
Procedure: ● All reviews in this procedure shall be against the contract provisions.
● Produce Resource Calendar of Design Consultant / Contractor
Resources. Review and maintain the Resource Calendar on weekly
basis.
● Review Design Consultant / Contractor Progress on weekly basis at
activity level.
● Review Design Consultant / Contractor Material and Equipment Delivery
Schedule for actual progress of the purchasing, fabrication and delivery
using (PMF-010-SCH-003 Procurement Schedule for Critical Materials
and Equipment).
● Review Material condition and compliance upon delivery through MIR.
● Review material storage conditions.
● Analyze and Report on Design Consultant / Contractor Progress.
● Review the forecast of progress performance and compliance with
completion date.
● Review Project Expenditure as:
○ Works Value paid
○ Advance payment recovery
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○ Projected cash flow

○ Expenditure trends and Forecast Cost at completion
○ Review and Report on Variations
● Review reports on Project all project aspects such as design, schedule,
cost, variations, quality, suspensions, procurements, HSE risks, imposed
penalties.
NWC Project Manager
Roles: Responsible:
Supervision Consultant (Construction Stage)
Contractor (in Construction and Design & Build stage)
Consulted:
Design Consultant (in Design Stage)
Cluster Technical Services Director (in Design stage)
Informed:
Supply Chain GM
16.6.4.2 PMM-016-PRO-070-020 Manage Payments System
Procedure: ● Review works measurements and completion percentages.

● Review advance payment recovery amount.
● Review penalty adjustments.
● Review payment requests of the approved variations.
● Review Contractor/Consultant application for Payment.
Roles: Responsible:
Cluster Quantity Survey Lead
Design Consultant
Consulted:
Contractor
NWC Project Manager
Informed:
Finance Department
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Guidelines: ● List of items to be checked in payment application:

○ Check the overall invoice format and calculations for accuracy and
compliance with the Contract’s terms and conditions.
○ Verify / agree the invoice items, prices, quantities are in conformity
with the BOQ included in the Contract Documents and the quantities
○ Verify / agree that all required deliverables have been inspected and
Representative.
○ Verify / agree that any insurances, bonds, securities and like are still
valid and in effect for the Works or Services
○ Verify / Assess any back-charges, retentions, delay penalties or
other deductions to the Payment amount that the NWC is entitled to
withhold in accordance with the Agreement
16.6.4.3 PMM-016-PRO-070-030 Carryout Inspections and Audits
Procedure: ● Inspect and Report on the implementation and performance of

Contractor Health & Safety, Environmental and Quality Assurance
processes.
● Inspect and Report on Contractor/Consultant performance in respect of:
○ Work progress and resolving progress related issues.
○ Compliance with Technical specifications and resolving related
problems.
○ Managing change and dealing with variations orders.
○ Earned value and meeting budgets.
○ Availability and usage of Manpower and Equipment resources.
○ Managing and resolving manpower shortages and plant
breakdowns.
○ Material ordering procedures and timely deliveries.
Roles: Responsible:
Consulted:
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16.6.4.4 PMM-016-PRO-070-040 Project Documentation and Records Management
Procedure: ● Receive and file the project drawings, shop drawings and all their
revisions.
● Receive and file the works execution Baseline schedule and all schedule
revisions.
● Receive and file all the manpower records.
● Receive and file all plant and equipment records.
● Receive and file all the permanent material records.
● Receive and file records of equipment and material incorporated in the
works together with their operation manuals, warranties and staff training
records.
● Receive and file all the works progress records including the related
photographic records.
● Receive and file all the inspection and audit records.
● Receive and file all the Design Consultant/Contractor payments records
including closeout check report.
● Receive and file all Variation and Claim submissions.
● Receive and file all Design Consultant/Contractor information requests
and subsequent responses.
● Receive and file any other project related information and Design
Consultant/Contractor produced record.
● Use the ECMS to upload and store above documents.
Roles: Responsible:
Consulted:
Supply Chain GM
Cluster Finance GM
Supply Chain GM
Informed:
Director
16.7 PMM-016-PRO-080 Suspend and Resume Project
16.7.1 Objective
The objective of this process is to ensure that the project suspension and resumption are as
per valid reasons and timely activated.
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16.7.2 Policies
1. The partial suspension shall not be allowed before consuming the floating time of the
related activities.
2. The Design Consultant / Contractor is not allowed to work at projects sites during the
total suspension period.
3. The Design Consultant / Contractor shall be granted extension period to project
duration:
i. (against total suspension) equals to the total suspension period.
ii. (against partial suspension) equals to the affection on project progress based on
a report prepared by Supervision Consultant (in construction projects) or Cluster
Technical Services department (in design projects).
4. The Design Consultant / Contractor shall be granted additional 3 days against every
sequential thirty days of total suspension for resumption mobilization. The total
granted resumption mobilization periods shall not exceed 45 days.
16.7.3 Flowchart
Figure 16-8 PMM-016-PRO-080 Suspend and Resume Project Flowchart
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16.7.4 Procedures
16.7.4.1 PMM-016-PRO-080-010 Review the Suspension Justifications
Procedure: ● Within maximum 60 days from suspension reasons occurrence:

○ Design Consultant / Contractor shall submit a suspension.
○ Any Project Stakeholder shall notify NWC Project Manager by need
to suspend the project.
● Any exception to this duration must be raised to the Capital Projects &
Technical Services VP detailing the reasons of delay for his approval.
● The Supervision Consultant / Cluster Technical Services Director shall
assess the project suspension issues that:
○ raised through suspension request from Design Consultant /
Contractor / Any Project Stakeholder.
or
○ identified by any project stakeholder.
● Supervision Consultant / Cluster Technical Services Director shall
develop a report with recommendations using (PMF-016-PRO-044
Report on Partial Suspension Request) or (PMF-016-PRO-045 Report
on Total Suspension Request) within 3 days from the letter submission
date that submitted by Design Consultant / Contractor / Stakeholder.
Supervision Consultant (in construction projects)
Roles: Responsible:
Design Consultant / Contractor
Consulted:
Director
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16.7.4.2 PMM-016-PRO-080-015 Approve Suspension Request at Cluster
Procedure: ● The project Manager shall:

○ review the Supervision Consultant report.
○ initiate suspension request attaching form (PMF-016-PRO-009 Total
or Partial Greater than 50% Suspension Request Approval Form) or
(PMF-016-PRO-042 Partial Less than 50% Suspension Request
Approval Form) as per the suspension case.
○ send it to Cluster Projects GM within 3 days.
● The Cluster Projects GM shall review the suspension report, give 1 st
approval on approval form and forward it to the Cluster Senior GM within
3 days.
● The Cluster Senior GM, within 3 days, shall review the suspension report
then:
○ For partial suspension for less than 50% of remaining works, he shall
give final approval the suspension as per form (PMF-016-PRO-042).
or
○ For total suspension and partial suspension for more than 50% of
remaining works, he shall give 2nd approval as per form (PMF-016-
PRO-009) and forward it to Capital Projects & Technical Services
VP for review and final approval.
● Refer to (PMF-016-PRO-034 Projects Suspension and Resumption
Process Flow in Governance Document).
NWC Project Manager
Roles: Responsible:
Cluster Projects GM
Cluster Senior GM
Consulted:
Informed:
16.7.4.3 PMM-016-PRO-080-020 Approve Total / Partial Project Suspension for More
Than 50 % of Remaining Works at HQ
Procedure: ● The Capital Projects & Technical Services VP shall review and
approve/reject the complete/partial (for more than 50%) project
suspension request.
● Capital Projects & Technical Services VP shall forward the approved
request to the Cluster Senior GM for issuance.
● This procedure to be completed within 7 days. Refer to (PMF-016-PRO-
034 Projects Suspension and Resumption Process Flow in Governance
Document).
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Cluster Senior GM
Consulted:
PMO GM
Cluster Senior GM
Informed:
Cluster Projects GM
16.7.4.4 PMM-016-PRO-080-030 Issue a Formal Letter for Complete/Partial Project
Suspension
Procedure: ● Issue a formal letter to Design Consultant / Contractor to suspend the

project completely/partially within 3 days from Capital Projects &
Technical Services VP approval using (PMF-016-PRO-026 Suspension
Letter).
● The suspension shall be for defined duration or till further notice.
● Update the project status in ENJAZ system.

Consulted:
Director
Informed:
Cluster Projects GM
Supply Chain GM
16.7.4.5 PMM-016-PRO-080-040 Issue Resumption Recommendation
Procedure: ● After resolving suspension reasons, the Supervision Consultant shall

assess the situation and develop resumption report using (PMF-016-
PRO-046 Report on Resumption) within 2 days form suspension reasons
resolution.
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Consulted:
16.7.4.6 PMM-016-PRO-080-050 Issue a Formal Letter to Resume the Work
Procedure: ● The project Manager shall review the Supervision Consultant report,
initiate resumption request attaching form (PMF-016-PRO-007
Resumption Approval Form) and send it to Cluster Projects GM within 2
days.
● The Cluster Projects GM shall review the resumption request and
recommendation, give 1st approval and forward it to the Cluster Senior
GM within 2 days.
● The Cluster Senior GM shall:
○ review the resumption request and recommendation.
○ approve the request.
○ issue a formal letter to Design Consultant / Contractor to resume the
suspended work (whole or partial project).
within 2 days, using (PMF-016-PRO-022 Resumption Letter).
● The Design Consultant / Contractor shall submit extension of time
request within 15 days of receiving the resumption letter.
NWC Project Manager
Roles: Responsible:
Cluster Projects GM
Cluster Senior GM
Consulted:
Director
Informed:
Cluster Projects GM
Supply Chain GM
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16.8 PMM-016-PRO-085 Change Project Status from Partial Suspension to

Total Suspension
16.8.1 Objective
The objective of this process is to ensure that changing the project status from partial
suspension to total suspension is applied just when all the available works are completed.
16.8.2 Policies
1. This process shall be performed only for projects that are under partial suspension
only.
2. The request to change the project status from It is raised when the suspended works
reaches 50% of the all the available project works and activated when all available
works are completed.
3. The completion of all available project works in the project must be proven by updated
project schedule and a letter from the Supervision Consultant.
4. The total suspension start date must be next date to the available works completion
date.
16.8.3 Flowchart
Figure 16-9 PMM-016-PRO-085 Change Project Status from Partial Suspension to Total Suspension
Flowchart
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16.8.4 Procedures
16.8.4.1 PMM-016-PRO-085-010 Receive a Report of Changing Project Status from
Partial Suspension to Total Suspension
Procedure: ● When the suspended works become 50% of the remaining available
works, NWC Project Manager shall direct the consultant to create a
report regarding the project progress status using (PMF-016-PRO-043
Report on Changing Partial Suspension to Total Suspension).
● Supervision Consultant shall develop within 3 days from the direction a
report that clearly clarifies:
○ that the suspended works reached 50% of the remaining available
works.
○ the existence of suspension reasons for the suspended works.
○ a recommendation for changing the project status from partial
suspension to total suspension when all available works are
completed.
● For Design Projects, NWC Project Manager shall create this report once
the suspended works become 50% of the remaining available works.
NWC Project Manager
Roles: Responsible:
NWC Project Manager
Consulted:
Contractor (in construction projects)
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16.8.4.2 PMM-016-PRO-085-020 Raise a Request for Changing the Project Status

from Partial Suspension to Total Suspension
Procedure: ● The project Manager, within 2 days, shall:

○ review the Supervision Consultant suspension change report.
○ raise to Cluster Projects GM a request to change the project status
from partial suspension to total suspension when all available works
get completed.
○ Attach the form (PMF-016-PRO-040 Changing Partial Suspension
to Total Suspension Approval Form) to the request.
● The Cluster Projects GM, within 3 days, shall:
○ review the suspension change report, request and approval form.
○ give 1st approval on the approval form.
○ forward it to the Cluster Senior GM.
● The Cluster Senior GM, within 3 days, shall:
○ review the suspension change report and letter
○ give 2nd approval on the approval form.
○ forward it to Capital Projects & Technical Services VP for review and
final approval.
NWC Project Manager
Roles: Responsible:
Cluster Projects GM
Cluster Senior GM
Consulted:
Director
Informed:
16.8.4.3 PMM-016-PRO-085-030 Approve Changing to Total Project Suspension
Procedure: ● The Capital Projects & Technical Services VP shall review and
approve/reject the (PMF-016-PRO-040 Changing Partial Suspension to
Total Suspension Approval Form).
● Capital Projects & Technical Services VP shall forward the approved
approval form to the Cluster Senior GM for suspension change letter
issuance.
● This procedure to be completed within 7 days.
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Cluster Senior GM
Consulted:
PMO GM
Cluster Senior GM
Informed:
Cluster Projects GM
Supply Chain GM
16.8.4.4 PMM-016-PRO-085-040 Issue a Formal Letter for Total Project Suspension
Procedure: ● NWC Project Manager shall continuously follow with the Supervision
Consultant:
○ whether the available works are completed.
○ whether the partial suspension reasons still exist.
● Once the available works are completed and the partial suspension
reasons still exists, NWC Project Manager shall:
○ notify the Cluster Senior GM to issue a formal suspension change
letter to Design Consultant / Contractor.
○ update the project status in ENJAZ system to total suspension.
● Cluster Senior GM shall issue a formal suspension change letter to
Design Consultant / Contractor within 3 days from the notification. The
total suspension shall be for defined duration or till further notice.
● For resumption follow (PMM-016-PRO-080-040 Issue Resumption
Recommendation) and (PMM-016-PRO-080-050 Issue a Formal Letter
to Resume the Work).
Cluster Senior GM
Roles: Responsible:
NWC Project Manager
Consulted:
Informed:
Cluster Projects GM
Director
Supply Chain GM
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16.9 PMM-016-PRO-090 Withdraw Project

16.9.1 Objective
The objective of this process is to ensure that projects are timely withdrawn when the second
party fails to fulfill his contractual responsibilities.
16.9.2 Policies
1. NWC has the right to withdraw all or part of the remaining works of the any project if
the Design Consultant / Contractor does not fulfill his contractual responsibilities.
i. When NWC withdraws all the remaining project works, this case is known as
Total Withdraw.
ii. When NWC withdraws part of the remaining project works, this case is known as
Partial Withdraw.
2. The issued warning letters will be deemed invalid if Contractor progress returned on
track. Consequently, if the project became troubled again, the warning letters series
will start from first warning letter.
3. The Work Inventory Committee, beside the NWC Project Manager, shall including at
least representatives from:
i. Cluster Projects department
ii. Cluster Operation Excellence department
iii. Cluster Asset Management department
iv. Cluster HSSE department
v. Cluster Finance department
vi. Supervision Consultant
vii. Design Consultant / Contractor
4. The executed works (assets), equipment, material and any other project items at site
are considered under the NWC custody when the withdraw letter issued as follows:
i. The contractor construction equipment (owned and rentals such as cranes,
excavators, loaders, etc.) shall not be included in custody except specific
equipment that the committee recommends keeping under NWC custody that not
easily be provided by the new contractor.
ii. The project materials and equipment that contractually to be supplied and
installed in project works (such as transformers, pumps, pipes, etc.) shall be
assessed by the inventory committee to be included in / excluded from the
custody. The assessment shall be based on:
a. In case of inclusion in custody, the requirements of transporting and storing
the contractual material and equipment during the retendering period.
b. In case of exclusion from custody, the required duration to re-supply again
the materials and equipment.
iii. The materials and equipment that the committee decided to include in NWC
custody shall be transported to and stored in NWC warehouses (if any) or rental
warehouses (that has the required storing conditions).
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iv. Any costs of transportation, storing rent and securing the custodied materials and
equipment within first six months from withdraw letter issuance date shall be on
contractor expense.
5. In a withdrawn project, the sites and executed works shall be secured during the
retendering period by a security third party. The cost shall be on contractor expense
for the first six months from withdraw letter issuance date.
6. The Contractor is responsible for securing the safety at site for all withdrawn executed
works, materials and equipment within max 15 days from the withdraw letter.
7. After the duration in policies 5 and 6 exceeds six months from withdraw letter issuance
date (which is the retendering period as per Governance Document), the costs shall
be after then on NWC expense.
16.9.3 Flowchart
Figure 16-10 PMM-016-PRO-090 Withdraw Project Flowchart
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16.9.4 Procedures
16.9.4.1 PMM-016-PRO-090-010 Issue Urge Letter to Design Consultant / Contractor
Procedure: ● The urge letter (PMF-016-PRO-011 Urge Letter) shall be issued to

Design Consultant / Contractor if the reported Schedule Variance is more
than 15%.
● Notify Design Consultant / Contractor and detail the Contract breach(s)
in accordance with the contract terms and conditions and issue Urge
letter.
● Refer to (PMF-016-PRO-033 Projects Withdrawal Process Flow in
NWC Project Manager
Roles: Responsible:
Cluster Projects GM
Consulted:
Director
Supply Chain GM
Informed:
Supply Chain GM
Cluster Projects GM
16.9.4.2 PMM-016-PRO-090-020 Issue 1st warning letter to Design Consultant /
Contractor
Procedure: ● Issue 1st warning letter (PMF-016-PRO-010 1st Warning Letter) to

Design Consultant / Contractor if the reported Schedule Variance is more
than 20%.
● The 1st warning Letter is with a duration of 30 days to take corrective
actions.
● Also, a 1st warning letter (PMF-016-PRO-027 1st Warning Letter for Not
Submitting Project Schedule) shall be issued to Design Consultant /
Contractor if the Design Consultant / Contractor fails to submit the project
level 3 schedule after 15 days from the site handover date.
● The 1st warning Letter is with a duration of 30 days to take corrective
actions.
NWC Project Manager
Roles: Responsible:
Cluster Projects GM
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Consulted:
Director
Supply Chain GM
Legal Department
Informed:
Cluster Projects GM
Director
Supply Chain GM
16.9.4.3 PMM-016-PRO-090-030 Issue Final warning letter to Design Consultant /
Contractor
Procedure: ● If Design Consultant / Contractor failure is repeated, NWC Project

Manager shall prepare a written final warning letter with a duration of 15
days to take the corrective action.
● Cluster Projects GM shall endorse the final warning letter and send it to
Scheduling & Control GM for endorsement.
● Scheduling & Control GM shall endorse the final warning letter and send
it to Supply Chain GM for issuance.
● Supply Chain shall issue the final warning letter to the Design Consultant
/ Contractor.
● The Final warning letter shall be issued to Design Consultant /
Contractor:
○ if the reported Schedule Variance is still more than 20% after 30
days from the first warning letter. Use form (PMF-016-PRO-013
Final Warning Letter).
○ if the Design Consultant / Contractor fails to submit the project level
3 schedule after 30 days from the 1st warning letter that issued for
the same reason. Use form (PMF-016-PRO-025 Final Warning
Letter for Not Submitting Project Schedule).
NWC Project Manager
Roles: Responsible:
Cluster Projects GM
Supply Chain GM
Consulted:
Director
Supply Chain GM
Legal Department
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Informed:
Cluster Projects GM
Director
NWC Project Manager
Cluster Projects GM
16.9.4.4 PMM-016-PRO-090-040 Develop and Submit a Project Status Report and
Initiate Withdraw Approval Form
Procedure: ● If the Design Consultant / Contractor doesn’t take any corrective actions
after receiving the final warning, the Cluster Technical Services Director
/ Supervision Consultant shall prepare and submit a detailed project
status report 5 days after the end of the final warning period (15 days)
which shall include but not limited to the following:
○ The work progress.
○ The seriousness of Design Consultant / Contractor in taking the
corrective actions.
○ Recommendation of withdrawal or not.
● Cluster Technical Services Director / Supervision Consultant shall initiate
a withdraw approval form using (PMF-016-PRO-018 Withdraw Approval
Form) and populate it with NWC Project Manager. See procedure (PMM-
016-PRO-090-070 Approve the Project Withdrawal at Cluster).
Roles: Responsible:
Supervision Consultant (in construction projects)

NWC Project Manager
Informed:
Supply Chain GM
Cluster Projects GM
Director
Legal Department
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16.9.4.5 PMM-016-PRO-090-050 Develop a Project Works Inventory and Status

Report at the Project End Date
Procedure: ● If Contractor does not submit initial acceptance request at the project
contractual end date, the cluster projects GM shall form a project
situation assessing committee within 2 days before the project end date
to:
○ do project works inventory
○ identify the project status
○ describe the project situation works indicating the executed and
remaining works.
● The project situation assessing committee shall develop a committee
report using (PMF-016-PRO-048 Work Inventory Report for Not
Requesting IA&HO).
● The Cluster projects GM shall review and approve the report.
● NWC Project manager shall upload the approved report to ENJAZ
system.
● The committee forming, the assessment, the report review and report
uploading shall be completed within 14 days from the contractual project
end date.
Roles: Responsible:
NWC Project Manager
Project Status Assessing Committee
Cluster Projects GM
Contractor
Consulted:
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16.9.4.6 PMM-016-PRO-090-053 Develop Project Status Report at 20% Time Overrun

and Recommend Withdrawal / Grace Period
Procedure: ● After 20% time overrun, a project status report shall be initiated by
Supervision Consultant and NWC Project Manager recommending
withdrawal / grace period.
● The cluster Projects GM shall review and sign the report and raise it to
Cluster Senior GM.
● The Cluster Senior GM for review and forward the report to Scheduling
& Control GM.
● The above actions shall be completed within 3 days after reaching 20%
time overrun.
Roles: Responsible:
NWC Project Manager
Cluster Projects GM
Cluster Senior GM
Contractor
Consulted:
Informed: Scheduling & Control GM
16.9.4.7 PMM-016-PRO-090-056 Approve Withdrawal / Grace Period

Recommendation
Procedure: ● The Scheduling & Control GM shall review and sign the project status
report and raise it to Capital Projects & Technical Services VP within 7
days.
● The Capital Projects & Technical Services VP shall decide within 2 days
whether to grant the Contractor a Grace Period or go through withdraw
process by issuing the 1st warning letter and after 30 days a final warning
letter.
● In case of grace period, this assessment shall be repeated after grace
period.
Roles: Responsible:
Consulted: Cluster Senior GM

Cluster Senior GM
Informed:
NWC Project Manager
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16.9.4.8 PMM-016-PRO-090-060 Review the Project Status / Supervision Consultant’s

Report and Recommendation and Approve the Withdraw Approval Form
Procedure: ● Review the Project Status / Supervision Consultant’s report and

recommendation and agree or disagree on recommendation.
● Populate the Approve the withdraw approval form with the Supervision
Consultant using (PMF-016-PRO-018 Withdraw Approval Form). See
procedure (PMM-016-PRO-090-040 Develop and Submit a Project
Status Report and Initiate Withdraw Approval Form).
● Forward the report with his recommendation within 2 days to the Cluster
Projects GM for review.

Consulted:
Director
Supply Chain GM
Legal Department
Cluster Senior GM
Informed:
Cluster Projects GM
16.9.4.9 PMM-016-PRO-090-070 Approve the Project Withdrawal at Cluster
Procedure: ● The Cluster Projects GM shall review the withdraw report and approve
the withdraw approval form (PMF-016-PRO-018 Withdraw Approval
Form) then forward them to Cluster Senior GM within 2 days.
● The Cluster Senior GM shall review the withdraw report and approve the
withdraw approval form (PMF-016-PRO-018 Withdraw Approval Form)
then forward them to Capital Projects & Technical Services VP within 3
days.
● See (PMF-016-PRO-033 Projects Withdrawal Process Flow in
Cluster Projects GM
Roles: Responsible:
Cluster Senior GM
Consulted:
Cluster PMO Manager
Director
Legal Department
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Informed:
Director
16.9.4.10 PMM-016-PRO-090-075 Approve the Project Withdrawal at HQ
Procedure: ● The Capital Projects & Technical Services VP shall review the withdraw
report and approve the withdraw approval form (PMF-016-PRO-018
Withdraw Approval Form) then forward to the HQ/Cluster Negotiation &
Award Department (as per authority) within 7 days. The forwarding shall
be:
○ directly for NWC Projects.
○ through Cluster Senior GM (in 2 days) for MEWA Projects.
● See (PMF-016-PRO-033 Projects Withdrawal Process Flow in

Consulted:
PMO GM
Supply Chain GM
Legal Department
HQ/Cluster Negotiation & Award Department (as per
Informed:
authority)
Authorized Person
Cluster Senior GM
Supply Chain GM
16.9.4.11 PMM-016-PRO-090-080 Final Approval on the Project Withdrawal at HQ
Procedure: ● After the HQ/Cluster Negotiation & Award Department (as per authority)
within 14 days:
○ reviews the withdraw report and any documentation.
○ approves the and withdraw approval form (PMF-016-PRO-018
Withdraw Approval Form).
○ forwards the withdraw report and withdraw approval form (PMF-016-
PRO-018 Withdraw Approval Form) to Authorized Person for
approval.
the authorized person shall approve the withdrawal approval form within
7 days.
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Consulted:
authority)
Legal Department
Informed:
Cluster Senior GM
16.9.4.12 PMM-016-PRO-090-083 Issue Withdraw Letter to Design Consultant /
Contractor
Procedure: ● The HQ/Cluster Supply Chain GM (as per authority) shall perform, within
2 days, the following:
○ Review the withdrawal documentation.
○ Execute any contract related penalties.
○ Update the Consultant / Contractor evaluation records.
○ Prepare the Withdraw Letter using (PMF-016-PRO-021 Withdraw
Letter) which shall include the following:
- Demobilization instructions.
- Requesting the Design Consultant / Contractor to identify his
representative in The Actual Quantity Survey Committee.
- Compensation details.
○ Issue the withdraw letter to Consultant / Contractor.
Roles: Responsible: HQ/Cluster Supply Chain GM (as per authority)

Consulted:
Legal Department
authority)
NWC Project Manager
Design Consultant (if it is design stage)
Informed:
Contractor (if it is construction stage)
Supervision Consultant (if it is construction stage)
Cluster Projects GM
Supply Chain GM
Director
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16.9.4.13 PMM-016-PRO-090-086 Update the Project Status in ENJAZ System and

Secure the Site
Procedure: ● NWC Project Manager shall update the project status in ENJAZ system.
● Cluster Projects GM shall request form HSSE a security team to guard
the project site and all its contents once the withdrawal letter is issued.
● Cluster Projects GM shall request form Assets Management (Business
Operational Support) to oversee and keep the withdrawn works,
equipment and materials once the withdrawal letter is issued.
NWC Project Manager
Roles: Responsible:
Cluster Projects GM
HSSE GM
Consulted:
Legal Department
Cluster Senior GM
Cluster Senior GM
Informed:
Director
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16.9.4.14 PMM-016-PRO-090-090 Perform Inventory on Actual Executed and

Remaining Works
Procedure: ● After withdraw letter issuance, the NWC Project Manager shall request
for forming a Work Inventory Committee within 2 days from withdraw
letter issuance using (PMF-016-PRO-016 Work Inventory Committee
Forming Request).
● The Cluster Projects GM, within 2 days using (PMF-016-PRO-016 Work
Inventory Committee Forming Request), shall form the Work Inventory
Committee, beside the NWC Project Manager, shall including at least
representatives from:
○ Cluster Projects department
○ Cluster HSSE department
○ Cluster Finance department
○ Design Consultant / Contractor
● The Committee shall plan and perform inventory on the following:
○ all executed and remaining works.
○ all material and equipment on site as per mentioned policy No. 4.
● The Committee shall ensure application of the policies 5 and 6 in the
inventory report.
● The committee shall develop a formal report (PMF-016-PRO-028
Withdrawn Work Inventory Report) with signatures of all representatives.
If Design Consultant / Contractor representative doesn’t attend at the
determined date, he shall not have a right to object the committee report.
● The Cluster Projects GM shall approve the report.
● The whole procedure shall be completed within 45 days from the
withdrawal letter issuance date.
NWC Project Manager
Roles: Responsible:
Cluster Projects GM
Work Inventory Committee
Consulted:
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NWC Project Manager

Informed:
Cluster Projects GM
Director
Supply Chain GM
Legal Department
authority)
16.9.4.15 PMM-016-PRO-090-100 Request for Assigning Another Design Consultant /
Contractor to Complete the Contract Scope
Procedure: ● Prepare request for proposal package for the remaining work within
maximum 90 days from the withdrawal letter issuance date.
● The Supply Chain GM shall, within maximum 180 days from the
withdrawal letter issuance date, assign another Contractor (and issue
PO) for completion of the remaining work via one of the following
methods in sequence:
○ Negotiate with project bidders consequently to complete the project
at the contract prices.
○ Negotiate with project bidders consequently to complete the project
at current market prices.
○ Award to a Contractor through direct purchase process at current
market prices to complete the project.
○ Tender to Select New Contractor to complete the project.
● If the duration of inventorying the project works, RFP preparation and PO
issuance exceeds respectively the identified limits (45, 90 and 180 days
from withdrawal), an approval of the Capital Projects & Technical
Services VP must be obtained by a request that details the reasons of
delay.

Consulted:
Director
Supply Chain GM
Legal Department
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Supply Chain GM
Informed:
Director
Legal Department
16.10 PMM-016-PRO-100 Contract Closure
16.10.1 Objective
The objective of this process is to verify that all the Project (or a Project’s Stage) deliverables
and any other related work have been completed and accepted, together with all the
administrative activities. These activities include the finalization and agreement of all open
claims, updating the project records to reflect the final results and archiving them ready for
future use. With multi-contract (or multi-Stage) Projects the process should be repeated for
each one of the Contracts (or Stages).
16.10.2 Policies
1. The closure of a contract requires all the contract documentation to be collected,
indexed, filed and archived.
2. The Contract close documentation includes information on the final project Schedule
and Scope, Quality and Cost performance, Contract Change documentation,
Payment Records, Inspection and Audit results and Supplier prepared and submitted
documents. All these documents are catalogued and archived so that they can be
used for “lessons learned” information and as a basis for future Contractor evaluation.
3. Early termination is a special case of contract closure and can result from:
i. Mutual agreement between the two parties
ii. Default of one party
iii. For convenience of the Employer if it is so provided in the Contract
4. The rights and responsibilities of the contracted parties in the event of early
termination should be clearly detailed in the termination clause of the contract.
5. When the Employer, under the contract procurement terms and conditions, has the
right to terminate a contract, or a portion of the contract, at any time for convenience
he shall have to compensate the Supplier, not only for the value of the completed and
accepted works but for under-recovery of site and Head Office overheads, as well as
any justifiable Staff, Labor and Plant underutilization costs.
6. In the case of unresolved claims, the contract (or Stage) is closed after an accrual is
made on the Project account until the claim is resolved to cater for any potential costs.
Alternatively, the Project account can also be closed and an accrual is made in a
special holding account for unresolved and subject to Litigation Claims. NWC Project
Manager is responsible for requesting for these solutions.
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16.10.3 Flowchart
Figure 16-11 PMM-016-PRO-100 Contract Closure Flowchart
16.10.4 Procedures
16.10.4.1 PMM-016-PRO-100-010 Audit the Contract Closeout
Procedure: ● Ensure Issuance of Initial Acceptance and Hanover Certificates.

● Review and confirm the final measurements of the Project works.
● Utilize the Contract Closeout Audit Report Template (PMF-016-PRO-004
Contract Closeout Audit Report).
● Review the final inspections of the Project works.
● Confirm all defective and outstanding works have been completed as
agreed with the Snag List.
● Review and confirm all tests, manuals, warranties and relevant staff
training is completed, for all the services and equipment provided and
installed by the supplier, in accordance with the contract provisions.
● Review and confirm all the agreed variations and claims are properly
included in the measurements and value of the works.
● Confirm that there are no outstanding disputes and claims of any nature,
from either the Contractor or the employer.
● Confirm that there are no further disputes or claims of any nature, to be
submitted by either the supplier or the employer.
● Review and confirm all penalties and back-charges to the Contractor are
properly included in the final value of the works.
● Confirm the final value of the works.
● Refer to (PMF-016-PRO-032 Contract Closeout Checklist).
● Confirm the hand over Certificate has been issued.
● Finalize Contractor evaluation and send it to Vendor Management
Director to update evaluation result of Contractor.
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● Request and receive the Contractor confirmation that the final Payment
Certificate fully represents the fair and final value of all the executed
works, including all the variations and claims and that there will be no
further claims against the project.
● Review and approve the final payment application and forward it to the
Finance Department for payment in accordance with the Contract
provisions.
● Communicate to Finance department on any retention moneys and any
other funds retained with the dates they are due to the Contractor.
● Inform the NWC Project Manager that the audit result is acceptable and
the contract can be closed.
● This procedure is to be completed within 7 days form the formal final
acceptance of the contract deliverables.

NWC Project Manager
Consulted:
Cluster Projects GM
Cluster Finance GM
Cluster Project Quantity Survey Lead
Cluster Scheduling Section head
Director
16.10.4.2 PMM-016-PRO-100-020 Issue the Contract Closure Notification
Procedure: ● After receiving the result of contract closeout audit as acceptance, NWC
Project Manager shall formally, in 2 days, request from Cluster Projects
GM to issue a contract closeout notification to:
○ Cluster Supply Chain Manager
○ Cluster Finance GM
○ Cluster Asset Management & Operation Excellence Director
○ Supply Chain GM
● Cluster Projects GM shall formally, in 2 days, issue the contract closeout
notification.
NWC Project Manager
Roles: Responsible:
Cluster Projects GM
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Cluster Projects GM
Consulted:
Cluster Projects GM
Informed:
Cluster Finance GM
Director
Supply Chain GM

The table below identifies the KPIs of Project Procurement Management. The NWC Project
Table 16-1 Project Procurement Management KPIs

Detail Measurement
Year-to-date, has
Cluster Projects
Participation in pre- Department participated
1 Monthly Yes NA No
tender meeting in all pre-tender
meetings for projects
that tendered this year.
Year-to-date, has
Cluster Projects
Organization of Department organized
2 pre-bid meeting all pre-bid meeting (Job Monthly Yes NA No
(Job Explanation) Explanation meetings)
for all projects that
tendered this year.
date number of RFPs
that passed the
Request for
minimum RFP
3 Proposal (RFP) Monthly 100% NA < 100%
requirements to the
Completeness
year-to-date total
approved RFP in the
cluster
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Detail Measurement
suspension processes
in the cluster that issued
the suspension letter to
the contractor in more
than:
Commitment to - 15 days for
4 suspension suspensions that do not Monthly 0 1 >1
process duration require HQ approval
- 22 days for
suspensions that
requires HQ approval
from suspension
request submission
date.
processes of changing
project status from
Commitment to partial suspension to
duration of total suspension in the
changing project cluster that issued the
5 status from partial changing letter to the Monthly 0 1 >1
suspension to total contractor in more than
suspension 18 days from the date of
process that the suspended
works become 50% of
the remaining available
works.
Withdrawal of that did not issue a final
6 projects that have warning letter to the Monthly 0 NA >0
SV > 20% contractor despite the
SV remained more than
20% for 30 days.
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Detail Measurement
withdraw processes in
the cluster that raised
the withdraw letter to the
authorized person for
Commitment to
approval in more than:
7 withdraw process Monthly 0 1 >1
- 48 days for NWC
duration
projects
- 50 days for MEWA
projects
from final warning letter
issuance date.
that did NOT issue a
contract closeout
8 Contract Closeout Monthly 0 2 >2
notification after 9 days
from the date of formal
final acceptance of the
contract deliverables.
16.12 Attachments
PRO Project Procurement Management).
Table 16-2 Project Procurement Management forms, templates and guidelines
Document No. Title
PMF-016-PRO-001 Project Procurement Strategy
PMF-016-PRO-004 Contract Closeout Audit Report
PMF-016-PRO-005 PR Approval Form
PMF-016-PRO-006 Tender Status Report Template
PMF-016-PRO-007 Resumption Approval Form
PMF-016-PRO-008 RFP Approval Form
PMF-016-PRO-009 Total or Partial Greater than 50% Suspension Request Approval Form
PMF-016-PRO-010 1st Warning Letter
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Document No. Title
PMF-016-PRO-011 Urge Letter
PMF-016-PRO-012 Contractor Technical Bid Evaluation Form
PMF-016-PRO-013 Final Warning Letter
PMF-016-PRO-016 Work Inventory Committee Forming Request
PMF-016-PRO-017 Project Performance Guarantee and Bonds Register
PMF-016-PRO-018 Withdraw Approval Form
PMF-016-PRO-021 Withdraw Letter
PMF-016-PRO-022 Resumption Letter
PMF-016-PRO-025 Final Warning Letter for Not Submitting Project Schedule
PMF-016-PRO-026 Suspension Letter
PMF-016-PRO-027 1st Warning Letter for Not Submitting Project Schedule
PMF-016-PRO-028 Withdrawn Work Inventory Report
PMF-016-PRO-029 Tender Status Report Guidelines
PMF-016-PRO-030 Insurance Register
PMF-016-PRO-031 Warranty Register
PMF-016-PRO-032 Contract Closeout Checklist
PMF-016-PRO-033 Projects Withdrawal Process Flow in Governance Document
PMF-016-PRO-034 Projects Suspension and Resumption Process Flow in Governance

Document
PMF-016-PRO-035 Consultant Technical Bid Evaluation Form
PMF-016-PRO-036 Tender for Construction Process Flow in Governance Document
PMF-016-PRO-038 Project Procurement Strategy Guidelines
PMF-016-PRO-039 Project Pre-Tender Review Form
PMF-016-PRO-040 Changing Partial Suspension to Total Suspension Approval Form
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Document No. Title
PMF-016-PRO-041 Changing Partial Suspension to Total Suspension Letter
PMF-016-PRO-042 Partial Less than 50% Suspension Request Approval Form
PMF-016-PRO-043 Changing Partial Suspension to Total Suspension Report
PMF-016-PRO-044 Partial Suspension Request Report
PMF-016-PRO-045 Total Suspension Request Report
PMF-016-PRO-046 Resumption Report
PMF-016-PRO-047 Withdraw or Grace Recommendation Report
PMF-016-PRO-048 Work Inventory Report for Not Requesting IA&HO
PMF-016-PRO-050 Procurement Management Plan Guidelines
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Section 17 - Project Health, Safety and Environmental Management
Section 17 - Project Health, Safety and

Environmental Management
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History Page

12/01
● The process “PMM-017-HSE-010 Plan Project Health, Safety & Environmental” is
revised.
● The process “PMM-017-HSE-015 Environmental Impact Assessment” is added.
Change
● The process “PMM-017-HSE-020 Perform Health, Safety & Environmental
Description
Assurance” is revised.
● The process “PMM-017-HSE-030 Perform Health, Safety & Environmental Control”
is revised.
06/02
This section is developed as an update to “HSE” section in first version the Project
the changes:
● Adding HSE guidelines included in Mashroat White Book.
● Adding HSE Bidder evaluation objective scoring table from Mashroat White
Book.
● Adding the Construction HSE plan contents.
Change
Description ● Removing the procedure of developing Method statement to quality section.
● Removing the procedure of capturing quality lessons learned from HSE
planning process to HSE Assurance process.
● Adding the forms number inside the procedures.
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17 Project Health, Safety and Environmental Management

The subject of this particular section of the Project Management Manual (PMM) is Project Health, Safety
& Environmental Management.
The high-level process map for Project Health, Safety & Environmental Management is illustrated below
in Figure 17-1:
Figure 17-1 High-Level Process Map for Project Health, Safety & Environmental Management
17.1 PMM-017-HSE-010 Plan Project HSE Management

17.1.1 Objective
The objective of this process is to proactively put in place an effective regime on every NWC
capital project (including design and construction) to ensure the following:
● Prevention of accidents and injury to Project Team members.
● Prevention of accidents and injury to future operators and maintainers of the built asset.
● Prevention of accidents and injury to the general public.
● Prevention of occupational health problems.
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● Prevention of environmental impacts through construction, operation, maintenance and

disposal of the built asset.
The HSE planning responsibility through the project lifecycle passes from the NWC Project
Manager, who sets out the strategic HSE requirements at project level, to the Second Party
Design Consultant and Contractor, who develop and deploy tactical plans to ensure that the
strategic HSE requirements are met in full (i.e. HSE Management Plan Sections within the
Design Management Plan and Construction Management Plan).
17.1.2 Policies
1. NWC Capital Projects & Technical Services fully supports the high standards and
HSE policies of the business. There are no exceptional circumstances where the HSE
policies may be ignored at the level of a Cluster, program or individual project.
2. Regarding all HSE aspects, all Projects stakeholders must act safely and proactively
avoid HSE violations and accidents. Prevention is always before recovery or cure.
3. Each project must have a separate section for HSE management in the Project
Management Plan, created by the NWC Project Manager and Business Unit Safety
Section Head and used as the guiding document for internal and external staff
4. The approved Project Management Plan, including the HSE Management Plan
Section, must be included in the tender document when NWC is procuring third-party
services and products in support of project execution.
construction) including HSE Management Plan Section for the project. These
management plans must comply with the HSE management requirements defined in
6. The HSE Management Plans in PMPs of NWC, Design and Construction must be
7. Second party HSE Management Plans must include clear policies and procedures for
staff induction and on-the-job training. In addition, second party HSE Management
Plans shall include or refer to the related guidelines/procedures included in
appendices table as applicable to the scope of work:
8. Planning for assessments of health and safety risk and environmental impact must be
specific and unique to the location, activities and characteristics of the project. It must
not be generic or copy-and-paste from previous projects, otherwise it will be rejected.
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17.1.3 Flowchart
Figure 17-2 PMM-017-HSE-010 Plan Project HSE Management Flowchart
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17.1.4 Procedures
17.1.4.1 PMM-017-HSE-010-010 Develop the HSE Management Plan Section of the

includes a dedicated section for HSE management.
● Consider approved NWC HSSE Policies and Regulation when creating
NWC HSE Management Plan.
● Business Unit Safety Section Head shall consult Cluster HSSE Manager
as follows:
○ Provide him by the draft Project HSE Management Plan.
○ Obtain his feedback.
○ Discusses with him about the feedback until agreeing on all
feedback items.
○ Incorporate the agreed feedback items.
● Update the Project HSE Section throughout the lifecycle with the
Roles: Responsible:
NWC Project Manager
Consulted:
HSSE GM
Cluster PMO Manager
Informed:
Cluster Projects GM
HSSE GM
17.1.4.2 PMM-017-HSE-010-020 Approve the HSE Management Plan Section of
Procedure: ● Review and Approve the HSE Management Plan Section of Project
Management Plan.
satisfactorily.
● Approve the submitted Project HSE Management Plan Section.
Roles: Responsible: Cluster HSSE Manager
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Consulted:
NWC Project Manager
Cluster Projects GM
HSSE GM
Informed:
NWC Project Manager
Cluster Projects GM
HSSE GM
17.1.4.3 PMM-017-HSE-010-030 Ensure HSE Requirements and Technical Evaluation

includes a dedicated section for HSE management.
own HSE Management Plan and must submit it during the contractual
proposals includes HSE assessment criteria, which addresses:

Consulted:
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17.1.4.4 PMM-017-HSE-010-040 Develop Project HSE Management Plan Section in

Procedure: ● Develop Project HSE Management Plan Section in the Project Design
Management Plan.
● Ensure that the Project HSE Management Plan Section in the Project
Design Management Plan is in alignment with the Project HSE
● The Design HSE Management Plan shall strictly be in alignment with
(00_BS01_FM_022.01 HSSE Requirements of Contract Appendix)
which the Design Consultant is responsible to fulfill during the Design
Stage.
Director about the development of the Project HSE Management Plan
Section.
● Include the Project HSE Management Plan Section in the Project Design
Management Plan.

NWC Project Manager
Consulted:
17.1.4.5 PMM-017-HSE-010-050 Ensure HSE Requirements and Technical Evaluation

HSE Management Plan and must submit it during the contractual
proposals includes HSE assessment criteria, which addresses:

Consulted:
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17.1.4.6 PMM-017-HSE-010-060 Develop the Construction HSE Management Plan

Section
Procedure: ● Develop Project HSE Management Plan Section in the Project

● Ensure that the Project HSE Management Plan Section in the Project
Design Management Plan is in alignment with the Project HSE
● The Construction HSE Management Plan shall strictly be in alignment
with the following which the Contractor is responsible to fulfill during the
stages from construction to closeout.
○ (00_BS01_FM_022.01 HSSE Requirements of Contract Appendix)
○ (PMF-017-HSE-232 Construction HSE Management Plan
Guidelines).
the development of the Project HSE Management Plan Section.
● Include the Project HSE Management Plan Section in the Project

NWC Project Manager
Consulted:
17.2 PMM-017-HSE-015 Environmental Impact Assessment

17.2.1 Objective
The objective of this process is to ensure the alignment of NWC Capital project to governmental
Environmental regulations; in order to effectively participate in environment protection.
The objective of this process is to proactively put in place an effective regime on every NWC.
17.2.2 Policies
1. Environmental Impact Assessments (EIA) study and report shall be created as per
National Center for Environmental Compliance (NCEC) requirements. Every Water
and Wastewater shall have an EIA as per NCEC EIA criteria.
2. Environmental Impact Assessments (EIA) study and report shall be approved by
NCEC for the project land designation and obtaining permits for TSE discharges to
the environment.
3. The approved EIA shall be binding to the Contractor and the project works. The
project works shall be executed as per NCEC requirements. This requires timely
consultation with Environmental Compliance Director.
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17.2.3 Flowchart
Figure 17-3 PMM-017-HSE-015 Environmental Impact Assessment Flowchart
17.2.4 Procedures
17.2.4.1 PMM-017-HSE-015-010 Prepare Environmental Impact Assessment
Procedure: ● Perform Environmental Impact Assessment, using (PMF-017-HSE-231

Environmental Impact Assessment Guidelines), by Environmental
Consultant that approved by National Center for Environmental
Compliance (NCEC).
● Cluster Environmental Compliance Manager shall provide any required
information Environmental Consultant to complete the study.
● The Environmental Consultant shall submit the Environmental Impact
Assessment study to Cluster Environmental Compliance Manager for
review before submitting to NCEC.
Roles: Responsible: Environmental Consultant
Accountable: Cluster Environmental Compliance Manager

Environmental Compliance Director
Consulted:
NWC Project Manager
Informed:
NWC Project Manager
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Guidelines ● The Consultant shall undertake all surveys and assessments for the
Environmental Baseline Survey Assessment (EBSA) study in line with
the industry standards, National Center for Environmental Compliance
(NCEC) standards and guidelines and the international standards
applicable. The data should be in the report include at least the following:
○ Ambient air quality.
○ Climatic and metrological data.
○ Noise.
○ Soil and groundwater quality.
○ Groundwater hydrology.
○ Geology and seismology.
○ Topography and natural surface drainage.
○ Terrestrial ecology.
○ Socio-economic information
● Environmental Impact Assessments (EIA) study and report are required
for the purposes of obtaining approval from National Center for
Environmental Compliance (NCEC) for the land designated for the STPs
and obtaining permits for TSE discharges to the environment, i.e.
discharges to inland watercourse (wadi). The work should be done as
per NCEC requirement.
17.2.4.2 PMM-017-HSE-015-020 Obtain NCEC Approval on Environmental Impact

Assessment
Procedure: ● After NWC review, the Environmental Consultant shall obtain approval
from National Center for Environmental Compliance (NCEC) prior to
Design and land acquisition.
● The Environment Consultant shall submit the approved EIA to the
Cluster Environmental Compliance Manager who shall pass it to
Environmental Compliance Director.
Environmental Consultant
Roles: Responsible:
Consulted:
NWC Project Manager
Informed:
NWC Project Manager
17.3 PMM-017-HSE-020 Perform Health, Safety & Environmental Assurance

17.3.1 Objective
The objective of this process is to ensure application of the previously-planned and approved
HSE-related activities in a systematic manner, to ensure that the project employs all processes
needed to meet its HSE requirements and obligations in full.
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17.3.2 Policies
1. Assurance must be provided, through objective evidence, that the planned HSE-
related activities and control measures have been properly integrated into the other
project activities, and that their execution has been effective and efficient.
2. Results of the HSE-related activities and control measures must be evaluated on a
regular basis and formally reported in the Construction monthly project progress
report, to the satisfaction of the Supervision Consultant and NWC Project Manager.
3. Second Party HSE Management Plans must be supported by competent health and
safety risk assessments and method statements. Work activities by Second Parties
must only be carried out if there are associated HSE assurance documents in place,
such as risk assessments, impact assessments, method statements, construction
safety guidelines, induction training records, tool box training records and, most
importantly, an approved NWC permit to carry out the specific construction activities
identified in the method statement.
4. All HSE Management Plans and associated assurance records are subject to periodic
audits by NWC.
5. There must be provision for training of workers in the importance of method
statements and how method statements must be followed at all times for all activities,
without exception. This principle must be covered in the workers’ induction training
and subsequent toolbox style training must be given to cover each approved method
statement, using the supporting HSE guidelines from the NWC library and highlighting
the specific steps in the method statement, which have been added as mitigation
against identified HSE risks and impacts.
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17.3.3 Flowchart
Figure 17-4 PMM-017-HSE-020 Perform Health, Safety & Environmental Assurance Flowchart
17.3.4 Procedures
17.3.4.1 PMM-017-HSE-020-010 Carry Out and Submit the Scheduled HSE-Related
Design Study
Procedure: ● The number and frequency of HSE-related studies shall be shown by the
Design Consultant in his design activity schedule.
● This shall include the following as a minimum, unless a formal, written
concession is granted by NWC in exceptional circumstances:
○ Hazard and Operability (HAZOP) study
○ Failure Mode, Effect and Criticality Analysis (FMECA) study
● Compile and formally report on each completed study.
● Each HSE-related design study must be submitted as an integral
package with the appropriate design deliverables, such as drawings,
calculations, etc.
00_PT03_MN_002.02 689 of 751 05/01/2022


Consulted:
NWC Project Manager
Informed:
17.3.4.2 PMM-017-HSE-020-020 Approve the HSE-Related Design Study
Documentation
Procedure: ● HSE-related design study reports must be approved with the associated
design information (drawings, calculations, etc.)
● The review of each design deliverable package, including the associated
HSE- related study reports, is led by the Cluster Technical Services
Director, assisted by the Business Unit Safety Section Head, as part of
the review and approval activity
● Include all HSE-related design study documentation comments and
suggestions for improvements in the design review package response.
Roles: Responsible:
NWC Project Manager
Consulted:
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17.3.4.3 PMM-017-HSE-020-030 Carry out an HSE Risk Assessment for PTW
Procedure: ● Use (PMF-017-HSE-006 HSE Assessment Checklist for Method

Statement) in HSE assessment.
● The HSE Risk Assessment for a Method Statement is an attachment to
the Permit to Work (PTW).
● Use (PMF-017-HSE-007 HSE Observations Register) as an input as this
includes risks observed from applying previous method statements.
● The rationale is as follows for a risk assessment to support a method
statement:
○ Method statements must describe the activities in terms of the
execution methodology, materials which will be consumed, the tools
and equipment to be used, the personal protective equipment (PPE)
required for the activities, and an accompanying risk assessment.
○ The risk assessment must show the mitigation actions as part of the
method statement, in order to minimize and control the identified
risks if they cannot be entirely eliminated (e.g. through cancelling the
planned activities, which is not usually a practical mitigation in
construction projects).
○ The risk assessment is further supported by the attachment of
relevant HSE forms and guidelines provided by NWC. If a form is
not covered in NWC forms set Contractor shall develop the form and
obtain NWC approval.

Informed:
NWC Project Manager
17.3.4.4 PMM-017-HSE-020-040 Approve the Submitted HSE Risk Assessment
Procedure: ● The Risk Assessment must be approved with the method statement.
● The review of each risk assessment, including the associated
attachments, is performed by the Supervision Consultant.

NWC Project Manager
Consulted:
Contractor
Informed:
NWC Project Manager
00_PT03_MN_002.02 691 of 751 05/01/2022

17.3.4.5 PMM-017-HSE-020-050 Draft and Submit a Permit to Work for an

Area/Section of the Project
Procedure: ● Use (PMF-017-HSE-005 Permit to Work Form) for each area/section of

the project defined in the approved Construction Management Plan.
● Attach the following documents to the draft PTW. All must be approved:
○ Method Statement
○ ITP(s)
○ Shop Drawings
○ MAT submittal
○ Quality forms and guidelines (use as a guideline the work related
quality procedures attached to Quality section)
○ HSE forms and guidelines (use as a guideline the work related HSE
procedure. The procedures identified in the guidelines below.)
○ HSE Assessment Checklist (i.e. risk assessment)
○ Municipality PTW (if required)
○ Traffic PTW (if required)
● Discuss the set of documents with the Supervision Consultant prior to
formal submission.
● Submit PTW package for approval.
● PTW submissions are mandatory to start any work activity at site. The
NWC Project Manager and Supervision Consultant must ensure that the
Contractor does not commence work until the planned work activities
have been assessed from a quality perspective, supported by the HSE
perspective, and have been covered by an approved NWC Permit to
Work.

Consulted:
NWC Project Manager
Informed:
Use as a guideline and attach to PTW the work related HSE procedure from
Guidelines
the following:
● EPM-KSE-PR-000001 Project Pollution Control Procedure
● EPM-KSE-PR-000002 Project Waste Management Procedure
● EPM-KSH-PR-000004 Project Respiratory Protective Equipment
Procedure
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● EPM-KSH-PR-000006 Project Labor Accommodation Sanitation &

Hygiene Procedure
● EPM-KSH-PR-000007 Project Control of Hazardous Materials
Procedure
● EPM-KSH-PR-000008 Project Heat Stress Management Procedure
● EPM-KSH-PR-000009 Project Asbestos Management Procedure
● EPM-KSH-PR-000010 Project Hearing Conservation Program
● EPM-KSS-PR-000001 Project General Safe Working Requirements
Procedure
● EPM-KSS-PR-000002 Project Housekeeping Requirements
Procedure
● EPM-KSS-PR-000003 Project Personal Protective Equipment
Procedure
● EPM-KSS-PR-000004 Project Fire Prevention and Protection
Procedure
● EPM-KSS-PR-000005 Project Fall Protection Procedure
● EPM-KSS-PR-000006 Project Barricades and Signs Procedure
● EPM-KSS-PR-000007 Project Confined Space Entry Procedure
● EPM-KSS-PR-000008 Project Elevated Work Platform Procedure
● EPM-KSS-PR-000009 Project Compressed Gas Cylinder
Procedure
● EPM-KSS-PR-000010 Project Night Works Procedure
● EPM-KSS-PR-000011 Project Portable Ladders Inspection and
Control Procedure
● EPM-KSS-PR-000012 Project Drinking Water Procedure
● EPM-KSS-PR-000013 Project Work Over or Near Water Procedure
● EPM-KSS-PR-000014 Project Emergency Preparedness Procedure
● EPM-KSS-PR-000015 Project Suspended Personal Platform
Procedure
● EPM-KSS-PR-000016 Project Hazardous Work Permit Procedure
● EPM-KSS-PR-000017 Project Powered Industrial Trucks Procedure
● EPM-KSS-PR-000018 Project Crane and Lifting Operation
Procedure
● EPM-KSS-PR-000019 Project Demolition Procedure
● EPM-KSS-PR-000020 Project Welding Operation Procedure
● EPM-KSS-PR-000021 Project Electrical Safety Procedure
● EPM-KSS-PR-000022 Project Non-Destructive Examination
Procedure
00_PT03_MN_002.02 693 of 751 05/01/2022

● EPM-KSS-PR-000023 Project Vehicle Safety Management

Procedure
● EPM-KSS-PR-000024 Project Hazard Communication Procedure
● EPM-KSS-PR-000025 Project Office Facilities Procedure
● EPM-KSS-PR-000026 Project Utility Clearance Procedure
● EPM-KSS-PR-000027 Project Manual Material Handling Procedure
● EPM-KSS-PR-000028 Project Floor and Wall Openings Procedure
● EPM-KSS-PR-000029 Project Roofing Work Procedure
● EPM-KSS-PR-000030 Project Safety Watches Procedure
● EPM-KSS-PR-000031 Project Lockout & Tagout Procedure
● EPM-KSS-PR-000032 Project Excavation and Trenching Procedure
● EPM-KSS-PR-000033 Project Scaffolding Control Management
Procedure
● EPM-KSS-PR-000034 Project Road Works Procedure
● EPM-KSS-PR-000035 Project Piling Operations Procedure
● EPM-KSS-PR-000036 Project Blasting and Explosive Procedure
● EPM-KSS-PR-000037 Project Powder Actuated Tools Procedure
17.3.4.6 PMM-017-HSE-020-060 Approve the Submitted PTW Request
Procedure: ● The PTW must be approved with the associated attachments.

● The review of each PTW, including the associated attachments, is led by
the Supervision Consultant, with consultation by the Cluster QA Section
Head, Business Unit Safety Section Head, as part of the review and
approval activity.

NWC Project Manager
Consulted:
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17.3.4.7 PMM-017-HSE-020-070 Carry out HSE Inspections and Audits Recommend

Penalties
Procedure: ● The Supervision Consultant and Business Unit Safety Section Head shall
carry out periodic and occasional inspections and audits at the
construction site. They can perform the inspections and/or audits jointly
and individually.
● Use the audit checklists to perform the audit:
○ (PMF-017-HSE-015 HSE Inspection Checklists)
○ (00_BS01_FM_001.01 Audit of Contractor Safety Performance)
● During the visits, the Supervision Consultant and/or the Business Unit
Safety Section Head shall discuss and give informal guidance and
directions on his observations and answer any question raised during the
visit.
● As per the findings of inspection and/or audit, use the following forms, as
required, to formally inform the Contractor HSE violation:
○ (PMF-017-HSE-012 HSE Observation Record)
○ (PMF-014-COM-013 Non Conformance Report NCR)
● If an HSE violation found under a provision in (00_BS01_GD_002.01
Fines and Penalties of Contractor HSE Violations), recommend penalties
on Contractor as per the provision using the form (00_BS01_FM_026.01
HSSE Contractors Violation Form for Fine Report). The recommendation
shall be attached to the relevant HSE document (PMF-017-HSE-012
HSE Observation Record) and/or (PMF-014-COM-013 Non
Conformance Report NCR) and raise them to NWC Project Manager for
further process.
Roles: Responsible:
Contractor
Consulted:
NWC Project Manager
Informed:
Contractor
00_PT03_MN_002.02 695 of 751 05/01/2022

17.3.4.8 PMM-017-HSE-020-075 Perform Monthly Evaluation for Contractor HSE

Performance
Procedure: ● Supervision Consultant shall monthly evaluate the HSE performance of

the Contractor.
● Supervision Consultant shall use the following as information source:
○ HSE Inspection Records.
○ HSE Audit reports.
○ HSE Observation Records.
○ HSE NCR’s.
○ HSE Monthly Report.
○ Any other HSE information source.
● Supervision Consultant shall submit the evaluation report using
(00_BS01_FM_025.01 Periodic Evaluation of Contractor HSSE
Performance) to NWC Project Manager who shall forward a copy to
Cluster HSSE Manager.

Contractor
Consulted:
NWC Project Manager
NWC Project Manager
Informed:
17.3.4.9 PMM-017-HSE-020-080 Request Closure of the PTW
Procedure: ● Upon successful completion of the construction activities carried out

under the NWC Permit to Work, it is incumbent upon the Contractor, with
agreement of the Supervision Consultant, to formally request closure of
the permit.
● The closure request shall be recorded on the PTW Form itself and be
submitted for closure.

Consulted:
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17.3.4.10 PMM-017-HSE-020-090 Agree Closure of the PTW
Procedure: ● The Supervision Consultant shall schedule a visit to the construction site,
in order to close the permit in a professional manner.
● The Supervision Consultant shall ensure that all inspection and testing
have been carried out as per approved ITP.
● If the closure request is denied, then Supervision Consultant shall inform
the Contractor verbally during the visit and write the reasons on the PTW
form.
● If the closure request is accepted, then Supervision Consultant shall
inform the Contractor verbally during the visit and record the closure on
PTW form.
● In either case, Supervision Consultant shall return the updated PTW form
to the Contractor for filing.

Contractor
Consulted:
NWC Project Manager
Informed:
Contractor
17.3.4.11 PMM-017-HSE-020-100 Capture Lessons Learned on This Project Regarding
HSE Management
Procedure: ● Reflect on HSE-related issues and document the key lessons learned
● The lessons learned may include the following:
○ HSE-related performance of the Design Consultant.
○ HSE-related performance of the Supervision Consultant.
○ HSE-related performance of the Contractor.
○ HSE-related performance of NWC staff.
○ HSE issues relating to materials, tools and construction techniques.
○ Improvements to HSE-related documents and processes in the
Project Management System, such as guidelines, formats, etc.
● Individual staff appraisals, or debriefing, must take place for Project
Team members. HSE-related performance and learning opportunities
should be considered as part of this process.

Consulted:
00_PT03_MN_002.02 697 of 751 05/01/2022

HSSE GM
Informed:
17.4 PMM-017-HSE-030 Perform Health, Safety & Environmental Control

17.4.1 Objective
The objective of this process is to apply the specific HSE risk and impact mitigations, which
were previously planned and documented in approved permit to work. The control process
must have a feedback element, to identify any unsatisfactory performance of the mitigation
actions and to eliminate their root causes, which may include failures in the associated planning
and assurance activities.
17.4.2 Policies
1. All construction activities in projects must have an approved permit to work without
exception.
HSE management performance based on the NWC Project Management Plan and
the supporting project HSE register as criteria for satisfactory performance. Stopping
shall be applied only through formal notice using “00_BS01_FM_011.01 Stop Work
Order”.
3. Stopped works be resumed only upon approval by NWC of appropriate corrective and
preventive actions proposed by the party and accepted by NWC.
HSE management performance will not be accepted as grounds for a claim and may
be counter-claimed (i.e. penalized) by NWC of there is consequential loss as a result.
5. All accidents and incidents must be reported and registered (no matter how apparently
minor) and must be investigated to a meaningful and satisfactory conclusion. The final
report of any accident shall be developed by Cluster HSSE department using
(00_HSE_FM_009.01 HSE Accident Investigation Report).
6. Monthly HSE Report (PMF-017-HSE-014 Monthly HSE Report) shall be submitted
monthly by Contractor and verified by Supervision Consultant.
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17.4.3 Flowchart
Figure 17-5 PMM-017-HSE-030 Perform Health, Safety & Environmental Control Flowchart
00_PT03_MN_002.02 699 of 751 05/01/2022

17.4.4 Procedures
17.4.4.1 PMM-017-HSE-030-010 Review the HSE Aspects in Submitted Design
Review Packages
Procedure: ● Review the HSE Aspects in Submitted Design Review Packages.

● Consult Cluster HSSE Manager:
○ obtain his feedback.
○ discusses with him about the feedback until agreeing on all feedback
items.
○ incorporate the agreed feedback items.
● Review the implementation of previous packages comments and defects
corrections/prevention.
● Any unsatisfactory observations must be recorded using (PMF-017-
HSE-012 HSE Observation Record).
Roles: Responsible:
Design Consultant
Consulted:
NWC Project Manager
Informed:
17.4.4.2 PMM-017-HSE-030-020 Address HSE Related Issues in Technical Reviews
and Regular Design Progress Meetings
Procedure: ● HSE issues shall be addressed in all technical reviews and regular
progress meetings, as well as regular progress reports by the Design
Consultant.
● Address HSE issues in the Technical Review Reports.
● For recording of meetings, use the Minutes of Meeting format, clearly
identifying any HSE-related actions
Design Consultant
Roles: Responsible:
NWC Project Manager
Consulted:
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17.4.4.3 PMM-017-HSE-030-030 Carry Out Root Cause Analysis for Design Related
HSE Observations
Procedure: ● HSE Observation Record forms must be followed-up by thorough root

preventive actions.
● Root causes during design can lie within several areas but not limited to:
○ Incomplete design work
○ Inadequate design work
○ Poorly-defined requirements
○ Legislation changes
○ Changes to other projects in the group
● Use the “Root Cause Analysis” section of (PMF-017-HSE-012 HSE
Observation Record) to document the outcomes of the analysis exercise

Consulted:
NWC Project Manager
Informed:
17.4.4.4 PMM-017-HSE-030-040 Define Design Related Corrective and Preventive
Actions
Procedure: ● Design Consultant shall define the corrective and preventive actions for
the following:
○ Correction of the HSE observations.
○ Prevention of recurrence (e.g. a change to the design process itself).
● Use the Corrective and Preventive Action’s section in (PMF-017-HSE-
012 HSE Observation Record) or (PMF-014-COM-013 Non
Conformance Report NCR) to document the defined actions.
● Each root cause must be adequately treated (i.e. a defined mitigation
through correction and/or prevention).

Consulted:
NWC Project Manager
00_PT03_MN_002.02 701 of 751 05/01/2022

NWC Project Manager

Informed:
17.4.4.5 PMM-017-HSE-030-050 Supervise the Implementation of Documented HSE
Mitigation Actions
Procedure: ● The approved permit to work includes clearly identified steps, which have
been introduced in order to mitigate against known HSE risks.
● The Supervision Consultant must oversee that the Contractor carries out
the construction activities in accordance with the permit-to-work and its
attachments.
● This must start with observation that the Contractor has carried out
briefings and toolbox talks associated with the work and has clearly used
the approved permit to work as a central document for this active
communication purpose.
● Observe that the briefed staff are the actual staff who perform the work.
● Observe that the briefed staff have been made aware of the specific HSE
risk mitigation steps within the workflow.
Roles: Responsible:
Contractor
Consulted: Business Unit Safety Section Head
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17.4.4.6 PMM-017-HSE-030-060 Monitor Effectiveness of the Documented HSE

Mitigation Actions
Procedure: ● Through regular observation of construction activities implementation,

the Supervision Consultant must keep under review the permit to work,
including the specific HSE risk mitigation steps:
○ Are the mitigation steps adequate?
○ Have some risks been missed from the original assessment?
○ Are the mitigation steps being performed effectively and efficiently?
○ Are the mitigation steps themselves now causing new safety
hazards and/or environmental aspects?
○ Is there a need for more/refresh briefings and toolbox talks,
especially if the permit has been open for some considerable length
of time?
● Use the HSE Observation Record form to document any observed
issues, using the example questions listed above as a guide
● Supporting information must be routinely gathered, to assist the objective
measurement of HSE performance:
○ On-site labor man-hours
○ No. of incidents
○ No. of accidents
○ No. of near misses
○ Date and topic/content of toolbox talks, and briefings related to
permits (i.e. method statements, risk assessments and HSE
guidelines)
○ Personnel induction records relevant to the site(s) type of work

Consulted:
Contractor
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17.4.4.7 PMM-017-HSE-030-070 Carry Out Root Cause Analysis for Construction

Related HSE Observations
Procedure: ● HSE Observation Record forms must be followed-up by a thorough root

preventive actions
● Root causes during construction can lie within several areas but not
limited to:
○ Incomplete permit to work
○ Inadequate permit to work
○ Poor, or low level, supervision
○ Staff changes
○ Poor management of tools and materials
● Use the “Root Cause Analysis” section of the HSE Observation Form to
document the outcomes of the analysis exercise.

Consulted:
NWC Project Manager
Informed:
17.4.4.8 PMM-017-HSE-030-080 Address HSE-Related Issues in Regular Site
Meetings
Procedure: ● HSE issues shall be addressed in all regular site meetings, as well as
regular progress reports by the Contractor.
● For recording of meetings, use the Minutes of Meeting format, clearly
identifying any HSE-related actions.
phase.
Contractor
Roles: Responsible:
NWC Project Manager
Consulted:
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17.4.4.9 PMM-017-HSE-030-090 Investigate Reported Incidents and Accidents
Procedure: ● All accidents, incidents and near misses shall be reported on

(00_BS01_FM_010.01 Accident Reporting Form).
● All reported incidents, accidents and near misses shall be recorded in
(PMF-017-HSE-009 Accident Incident Register).
● All reported incidents and accidents shall be rigorously investigated,
using (00_HSE_FM_009.01 HSE Accident Investigation Report) as a
minimum.
● For the lessons learned, the Supervision Consultant shall make an
internal investigation report using (PMF-017-HSE-010 Internal HSE
Accident Investigation Report for Lessons Learned).
Roles: Responsible:
Contractor
NWC Projects Team
Consulted:
Contractor Team
NWC Project Manager
Informed:
Cluster Projects GM
17.4.4.10 PMM-017-HSE-030-100 Define Construction HSE-Related Corrective and
Preventive Actions
Procedure: ● Actions must be defined for the following:

○ Correction of the HSE observations
○ Prevention of recurrence (e.g. a change to the construction method
itself)
● Use the “Corrective and Preventive Action” section of the HSE
Observation Form (or the relevant section of the Accident/Incident
Investigation Report as relevant to the scenario in question) in order to
document the defined actions.
● Each root cause shall be adequately treated (i.e. a defined mitigation
through correction and/or prevention).

Consulted:
NWC Project Manager
00_PT03_MN_002.02 705 of 751 05/01/2022

Informed:
NWC Project Manager

The table below identifies the KPIs of Project Health, Safety & Environmental Management. The
NWC Project Manager is responsible to measure and report these KPIs at each KPI stated
frequency. The current status of each KPI is to be reflected in the monthly project progress report.
Table 17-1 Project Health, Safety & Environmental Management KPIs

Detail Measurement
Reported violations Year-to-date number of

1 of the permit to process violation Monthly 0 1 >1
work reports.
Number of overdue Year-to-date number of

2 HSE Observation actions beyond their due Monthly 0 9 >9
Record actions closure date.
No. of accidents for Year-to-date number of

3 Monthly 0 3 >3
the year-to-date Accidents.
No. of overdue Year-to-date number of

4 accidents reports overdue Accident Monthly 0 3 >3
for the year-to-date Reports.
Fatality Case (FTL)
5 Death of a worker Monthly 0 NA 1
(Cumulative)
(Cumulative).
Lost time Injury Site injury that causes
6 (LTI) -CASES the worker to miss 1 day Monthly 0 NA 1
(Cumulative) of work or more
(Cumulative).
Occupational
7 illness due to job Monthly 0 2 >2
Illness (OI)
hazards.
Occupational Year-to-date number of

8 Illness (OI) illness due to job Monthly 0 4 >4
(Cumulative) hazards (Cumulative).
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Detail Measurement
Restricted Work
Site injury resulting to
9 Cases (RWC) Monthly 0 NA 1
change job
(Cumulative)
(Cumulative).
Permanent
Site injury resulting to
10 Disabilities Cases Monthly 0 NA 1
Permanent Disabilities
(Cumulative)
(Cumulative).
Medical Treatment Site injury resulting in
11 Monthly 0 2 >2
Cases (MTC) the Hospitalization of a
worker.
Medical Treatment
Site injury resulting in
12 Cases (MTC) Monthly 0 4 >4
the Hospitalization of a
(Cumulative)
worker.
First Aid Site injury where first aid
13 Monthly 0 5 >5
Administered was administered to the
worker.
First Aid
Site injury where first aid
14 Administered Monthly 0 10 > 10
was administered to the
(Cumulative)
worker (Cumulative).
Site incident that could
15 Near Miss Event Monthly 0 5 >5
have caused an injury or
fatality (but did not).
Near Miss Event Site incident that could
16 Monthly 0 10 > 10
(Cumulative) have caused an injury or
fatality (but did not).
Property Damage
Site incident that could
17 Cases (PDC) Monthly 0 NA 1
have caused a property
(Cumulative)
damage (Cumulative).
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Detail Measurement
accidents that cause
Environmental
pollution of the
18 Incidents Cases Monthly 0 2 >2
environment - Waste
(EIC)
management violations -
air pollution, etc.).
accidents that cause
Environmental pollution of the
19 Incidents Cases environment - Waste Monthly 0 4 >4
(EIC) (Cumulative) management violations -
air pollution, etc.)
(Cumulative).
open NCRs issued to
the Contractor by the
No. of Non-
and/or NWC stating that
20 Conformance Monthly 0 2 >2
the Contractor did not
Reports
conform to site HSE
requirements, site HSE
Plan, or good HSE
practices.
open NCRs issued to
the Contractor by the
No. of Non- Supervision Consultant
Conformance and/or NWC stating that
21 Monthly 0 4 >4
Reports the Contractor did not
(Cumulative) conform to site HSE
requirements, site HSE
Plan, or good HSE
practices.
No. of HSE HSE Penalties
22 Monthly 0 2 >2
Penalties assessed against the
Contractor by NWC.
No. of HSE HSE Penalties
23 Penalties assessed against the Monthly 0 5 >5
(Cumulative) Contractor by NWC
(Cumulative).
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17.6 Attachments
HSE Project Health, Safety & Environmental Management).
Table 17-2 Project Health, Safety & Environmental Management forms, templates and guidelines
Document No. Title
00_BS01_FM_001.01 Audit of Contractor Safety Performance
00_BS01_FM_010.01 Accident Reporting Form
00_BS01_FM_011.01 Stop Work Order
00_BS01_FM_021.01 HSSE Commitment Certificate for Invoicing
00_BS01_FM_022.01 HSSE Requirements of Contract Appendix
00_BS01_FM_023.01 HSSE Project’s Plan Template
00_BS01_FM_024.01 HSSE Commitment Certificate at Kick Off Meeting
00_BS01_FM_025.01 Periodic Evaluation of Contractor HSSE Performance
00_BS01_FM_026.01 HSSE Contractors Violation Form for Fine Report
00_BS01_GD_002.01 Fines and Penalties of Contractor HSE Violations
00_HSE_FM_009.01 HSE Accident Investigation Report
EPM-KSE-PR-000001 Project Pollution Control Procedure
EPM-KSE-PR-000002 Project Waste Management Procedure
EPM-KSH-PR-000004 Project Respiratory Protective Equipment Procedure
EPM-KSH-PR-000006 Project Labor Accommodation Sanitation & Hygiene Procedure
EPM-KSH-PR-000007 Project Control of Hazardous Materials Procedure
EPM-KSH-PR-000008 Project Heat Stress Management Procedure
EPM-KSH-PR-000009 Project Asbestos Management Procedure
EPM-KSH-PR-000010 Project Hearing Conservation Program
EPM-KSS-PR-000001 Project General Safe Working Requirements Procedure
00_PT03_MN_002.02 709 of 751 05/01/2022

Document No. Title
EPM-KSS-PR-000002 Project Housekeeping Requirements Procedure
EPM-KSS-PR-000003 Project Personal Protective Equipment Procedure
EPM-KSS-PR-000004 Project Fire Prevention and Protection Procedure
EPM-KSS-PR-000005 Project Fall Protection Procedure
EPM-KSS-PR-000006 Project Barricades and Signs Procedure
EPM-KSS-PR-000007 Project Confined Space Entry Procedure
EPM-KSS-PR-000008 Project Elevated Work Platform Procedure
EPM-KSS-PR-000009 Project Compressed Gas Cylinder Procedure
EPM-KSS-PR-000010 Project Night Works Procedure
EPM-KSS-PR-000011 Project Portable Ladders Inspection and Control Procedure
EPM-KSS-PR-000012 Project Drinking Water Procedure
EPM-KSS-PR-000013 Project Work Over or Near Water Procedure
EPM-KSS-PR-000014 Project Emergency Preparedness Procedure
EPM-KSS-PR-000015 Project Suspended Personal Platform Procedure
EPM-KSS-PR-000016 Project Hazardous Work Permit Procedure
EPM-KSS-PR-000017 Project Powered Industrial Trucks Procedure
EPM-KSS-PR-000018 Project Crane and Lifting Operation Procedure
EPM-KSS-PR-000019 Project Demolition Procedure
EPM-KSS-PR-000020 Project Welding Operation Procedure
EPM-KSS-PR-000021 Project Electrical Safety Procedure
EPM-KSS-PR-000022 Project Non-Destructive Examination Procedure
EPM-KSS-PR-000023 Project Vehicle Safety Management Procedure
EPM-KSS-PR-000024 Project Hazard Communication Procedure
EPM-KSS-PR-000025 Project Office Facilities Procedure
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Document No. Title
EPM-KSS-PR-000026 Project Utility Clearance Procedure
EPM-KSS-PR-000027 Project Manual Material Handling Procedure
EPM-KSS-PR-000028 Project Floor and Wall Openings Procedure
EPM-KSS-PR-000029 Project Roofing Work Procedure
EPM-KSS-PR-000030 Project Safety Watches Procedure
EPM-KSS-PR-000031 Project Lockout & Tagout Procedure
EPM-KSS-PR-000032 Project Excavation and Trenching Procedure
EPM-KSS-PR-000033 Project Scaffolding Control Management Procedure
EPM-KSS-PR-000034 Project Road Works Procedure
EPM-KSS-PR-000035 Project Piling Operations Procedure
EPM-KSS-PR-00003 6Project Blasting and Explosive Procedure
EPM-KSS-PR-000037 Project Powder Actuated Tools Procedure
PMF-017-HSE-005 Permit to Work Form
PMF-017-HSE-006 HSE Assessment Checklist for Work Method Statement
PMF-017-HSE-007 HSE Observations Register
PMF-017-HSE-009 Accident Incident Register
PMF-017-HSE-010 Internal HSE Accident Investigation Report for Lessons Learned
PMF-017-HSE-012 HSE Observation Record
PMF-017-HSE-013 HSE Evaluation Objective Scoring Guide
PMF-017-HSE-014 Monthly HSE Report
PMF-017-HSE-100 HSE Guideline for Construction Sites - General
PMF-017-HSE-110 HSE Guideline for Construction Sites - Excavation
PMF-017-HSE-120 HSE Guideline for Construction Sites - Manual Handling
PMF-017-HSE-121 Manual Handling Risk Assessment
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Document No. Title
PMF-017-HSE-131 Confined Space Entry Permit
PMF-017-HSE-150 HSE Guideline for Construction Sites Mechanical Lifting
PMF-017-HSE-151 Lifting Plan & Risk Assessment & Method Statement form
PMF-017-HSE-160 HSE Guideline for Construction Sites Material Handling Storage Use and
Disposal
PMF-017-HSE-180 HSE Guideline for Construction Sites Concrete and Masonry

Construction
PMF-017-HSE-190 HSE Guideline for Construction Sites Welding and Cutting Works
PMF-017-HSE-230 HSE Guideline for Construction Sites Machinery Tools and Equipment
PMF-017-HSE-231 Environmental Impact Assessment Guidelines
PMF-017-HSE-232 Construction HSE Management Plan Guidelines
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Section 18 - Project Financial Management
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History Page

12/01
● The process “PMM-018-FIN-005 Plan Project Financial Management” is added.
● The process “PMM-018-FIN-010 Financial Planning” is replaced by the process
“PMM-018-FIN-015 Develop Project Cash Flow”.
Change
Description ● The process “PMM-018-FIN-020 Perform Financial Control” is elaborated.
● The process “PMM-016-FIN-030 Perform Financial Reporting” is removed as it is
covered in processes “PMM-014-COM-120 Design Performance Reporting” and
“PMM-014-COM-130 Construction Performance Reporting”. However, it was
describing how to automate the financial reporting.
06/02
This section is developed as an update to “Financial” section in first version the Project
the changes:
Change
Description ● Updating KPI’s.
● Updating Responsibilities as per NWC organization chart.
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18 Project Financial Management

The subject of this particular section of the Project Management Manual (PMM) is Project Financial
Management.
The high-level process map for Project Financial Management is illustrated below in Figure 18-1:
Figure 18-1 High-Level Process Map for Project Financial Management
18.1 PMM-018-FIN-005 Plan Project Financial Management

18.1.1 Objective
The objective of this process is to develop the Financial Management Plan Section of the
Project Management Plan and ensure that all financial activities are timely and properly
performed.
18.1.2 Policies
1. Each project must have a separate section for financial management in the Project
Management Plan, created by the NWC Project Manager, Cluster Cost Control
Section Head and the Cluster Cost Estimation Specialist and used as the guiding
00_PT03_MN_002.02 715 of 751 05/01/2022

construction) including Financial Management Plan Section for the project. These
management plans must comply with the financial management requirements defined
in the NWC Project Management Plan and must be approved by NWC during
3. The Financial Management Plans in PMPs of NWC, Design and Construction must
4. The NWC Financial Management Plan shall cover all project stages from Initial
Planning stage to project closeout.
18.1.3 Flowchart
Figure 18-2 PMM-018-FIN-005 Plan Project Financial Management Flowchart
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18.1.4 Procedure
18.1.4.1 PMM-018-FIN-005-010 Develop the Financial Management Plan Section of

includes a dedicated section for financial management.
● Update the Project Financial Section throughout the lifecycle with the
Roles: Responsible:
NWC Project Manager
Cluster Projects GM
Consulted:
Informed:
Cluster Projects GM
18.1.4.2 PMM-018-FIN-005-020 Approve the Financial Management Plan Section of
Procedure: ● Review and Approve the Financial Management Plan Section of Project
Management Plan.
satisfactorily.
● Approve the submitted Project Financial Management Plan Section.
Roles: Responsible:
Consulted:
NWC Project Manager
Cluster Projects GM
00_PT03_MN_002.02 717 of 751 05/01/2022


Informed:
NWC Project Manager
Cluster Projects GM
18.1.4.3 PMM-018-FIN-005-030 Ensure Financial Requirements and Technical

includes a dedicated section for financial management.
own Financial Management Plan and must submit it during the
Management Plan.
proposals includes financial assessment criteria, which addresses:

Consulted:
18.1.4.4 PMM-018-FIN-005-040 Develop Project Financial Management Plan Section

Procedure: ● Develop Project Financial Management Plan Section in the Project

● Ensure that the Project Financial Management Plan Section in the
Financial Management Plan Section in the NWC Project Management
Plan.
Director about the development of the Project Financial Management
Plan Section.
● Include the Project Financial Management Plan Section in the Project
Management Plan.
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NWC Project Manager
Consulted:
18.1.4.5 PMM-018-FIN-005-050 Ensure Financial Requirements and Technical

Financial Management Plan and must submit it during the contractual
proposals includes financial assessment criteria, which addresses:

Consulted:
18.1.4.6 PMM-018-FIN-005-060 Develop the Construction Financial Management Plan

Section
Procedure: ● Develop Project Financial Management Plan Section in the Project

● Ensure that the Project Financial Management Plan Section in the
Financial Management Plan Section in the NWC Project Management
Plan.
the development of the Project Financial Management Plan Section.
● Include the Project Financial Management Plan Section in the Project

NWC Project Manager
Consulted:
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18.2 PMM-018-FIN-015 Develop Project Cash Flow

18.2.1 Objective
The objective of financial planning is to plan how to spend the secured project fund (i.e. develop
Project Cash Flow) considering the planned cash flow in the project business case.
18.2.2 Policies
Policies for financial planning are as follows:
1. No project must be started, or continued, unless an approved budget has been
formally reserved by authorized persons within the NWC business.
2. All approved capital projects must be input to the Project Master Schedule held in the
PMIS (Primavera database).
18.2.3 Flowchart
Figure 18-3 PMM-018-FIN-015 Develop Project Cash Flow Flowchart
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18.2.4 Procedures
18.2.4.1 PMM-018-FIN-015-010 Prepare for Project Cash Flow Development
Procedure: ● This procedure shall be performed at the beginning of:

○ Initial Planning Stage.
○ Design Stage.
○ Construction Stage
● Capture the initial Project Cash Flow in the Project Business Case.
● Review the finance-related requirements in procurement strategy and
finance-related provisions in project contract to avoid discrepancies with
the Project Cas Flow such as contractual payment terms which may cash
flow.
● In project risk workshops, include and manage financial risks then
consider them in the project Financial Plan. See examples below.
● In all project meetings discuss potential variances then consider them in
the project Financial Plan.
● Examples for aspects that may increase of decrease the cost and viability
of a project:
○ External factor such as political, regulatory, economic and social
factors.
○ Availability of materials, special Design Consultant / Contractor /
Subcontractor / Equipment.
○ Land Availability.
○ Municipality Permits Availability.
○ Potential problems regarding interfaces with other projects.
○ Project site accessibility.
● Utilize financial historical information to better develop the project cash
flow.
Roles: Responsible:
NWC Project Manager
Cluster Projects GM
Consulted:
Informed:
Cluster Projects GM
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18.2.4.2 PMM-018-FIN-015-020 Develop Project Cash Flow
Procedure: ● Develop a project cash flow ensuring that planned payments equal to the
project approved budget.
● NWC Project Manager shall update the:
○ NWC Project Management Plan by the Developed Project Cash
Flow.
○ Project Cash Flow as per approved variations; then update NWC
Project Management Plan accordingly.
Roles: Responsible:
NWC Project Manager
Cluster Projects GM
Consulted:
Informed:
Cluster Projects GM
18.3 PMM-018-FIN-020 Perform Financial Control

18.3.1 Objective
The objective of financial control is to ensure that:
authorized invoices are made against certified invoices by authorized persons.
accurate cash flow forecasts are timely provided to the Cluster Finance Department as per
planned.
18.3.2 Policies
● Policies for financial control are as follows:
1. Payments must only be made against invoices which have been certified by:
i. For design projects: NWC Project Manager, Cluster Technical Services Director,
Cluster Projects GM.
ii. For EPC/construction projects: Supervision Consultant, NWC Project Manager
and Cluster Projects GM.
2. Invoicing information and actual payment information must be monthly maintained
based on Projects Primavera P6 database and in alignment with the NWC Finance
Management System.
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18.3.3 Flowchart
Figure 18-4 PMM-018-FIN-020 Perform Financial Control Flowchart
18.3.4 Procedures
18.3.4.1 PMM-018-FIN-020-010 Monitor Payment of Invoices
Procedure: ● Ensure that the second party payment is processed with formal approval
as follows:
○ For design projects: NWC Project Manager, Cluster Technical
Services Director, Cluster Projects GM.
○ For EPC/construction projects: Supervision Consultant, NWC
Project Manager and Cluster Projects GM.
● After second party invoice is processed form projects department to
Finance department, monitor on ISupplier whether the Second party has
timely received his payment as per finance policies.
● If the second party has not received his payment, escalate the issue.

Cluster Projects GM
Consulted:
Design Consultant (in Design Projects)
Supervision Consultant (in Construction Projects)
Contractor (in Construction Projects)
Cluster Finance GM
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18.3.4.2 PMM-018-FIN-020-020 Review of Finance System Report
Procedure: ● Receive a Monthly Finance System Reports from Finance Department.

● Review the report to ensure that payments are timely beaning made and
if any adjustment has taken place
● If the second parties are not timely receiving their payments, escalate
these issues.

Cluster Projects GM
Consulted:
Cluster Finance GM
18.3.4.3 PMM-018-FIN-020-030 Update Project Cash Flow
Procedure: ● Update the project cash flow as per actual information of:
○ Processed invoices.
○ Made payments.
○ Payment adjustments.
○ Approved variations.
○ Any other related information.

Cluster Projects GM
Consulted:
Supervision Consultant (for Construction Projects)
Cluster Finance GM
18.3.4.4 PMM-018-FIN-020-040 Create Cash Flow Forecast
Procedure: ● On monthly basis, create a cash flow forecast for the whole project.
● When requested or as planned, provide the Cluster Finance Department
by created Cash Flow forecast.
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Cluster Projects GM
Consulted:
Supervision Consultant (for Construction Projects)
Cluster Finance GM
18.3.4.5 PMM-018-FIN-020-050 Report Finance Aspects
Procedure: ● Ensure the inclusion of Financial Aspects in every monthly progress

report.
● Ensure discussing Financial Aspects in the weekly and monthly
meetings.
● Keep key stakeholders informed by financial issues.
NWC Project Manager
Roles: Responsible:
Cluster Projects GM
Consulted:
Cluster Finance GM
Informed: Relevant Stakeholders

The table below identifies the KPIs of Project Financial Management. The NWC Project Manager
Table 18-1 Project Financial Management KPIs

Detail Measurement
Commitment to
months in a project that
1 monthly update the Monthly 0 4 >4
did NOT have updated
project cashflow
cashflow.
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18.5 Attachments
NA
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Section 19 - Project Claim Management
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History Page

12/01
● The process “PMM-019-CLA-005 Plan Project Claim Management” is added.
● The process “PMM-019-CLA-010 Identify Potential Claims by Reviewing Contract
Documentation” is revised.
● The process “PMM-019-CLA-020 Avoid Claims” is revised.
Change ● The process “PMM-019-CLA-030 Assess and Quantify Claim” is revised.

Description ● The process “PMM-017-CLA-040 Resolve Claim” is removed as NWC Project
Manager is:
○ NOT entitled to confirm to second parties any variation. This is covered in the
control processes and “PMM-007-INT-060 Variation Control” process.
○ NOT authorized to resort to Alternative Dispute Resolutions (ADR).
● The form “PMF-017-CLA-001 Claims Register” removed.
06/02
This section is developed as an update to “Claim” section in first version the Project
the changes:
● Adding the following templates:
○ Constructability master list
Change
Description ○ Lessons Learned Register
● Merging Related/repeated procedures in process 4 to process 2.
● Updating responsibilities as per NWC Organization Chart.
● Simplifying and updating flowcharts.
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19 Project Claim Management

The subject of this particular section of the Project Management Manual (PMM) is Project Claim
Management.
The high-level process map for Project Claim Management is illustrated below in Figure 19-1:
Figure 19-1 High-Level Process Map for Project Claim Management
Claims are normal part of projects as they are inevitable in projects. So, the aim of claim management
should be to avoid claims as much as possible. The strategy to achieve this objective is to resolve as
early as possible any circumstance of a potential claim in the most beneficial way for the Project.
Many factors may result in claims (see examples below). The early recognition of such factors and open
communication between the parties can create an environment of cooperation, in terms of seeking
alternative solutions, where claims are less likely to occur.
During all project life, the awareness of the project team members about the typical causes of Claims
helps to early identify them to avoid or manage. The key typical claim causes that enforce the Contractor
/ Design Consultant to perform not contracted work or delay or impact contracted work are as follows:
● Circumstances that out of control of one or more of project parties.
● Improper planning which produces poor scope, schedule and/or cost baselines.
● Improper variation management such as poor effect study.
● Ambiguous terms or specifications.
00_PT03_MN_002.02 729 of 751 05/01/2022

● Resource problems such as late delivery or bad logistics.

● Slow decision making speed.
● Lack of thorough monitoring.
● Improper risk management such as failing to identify some risks or planning improper response.
● Weak constructability management.
● Not conduct or attend pre-tender meetings prior to bid.
● Not make site visits by bidders prior to bid.
● Constructive changes (changes imposed by factors outside Contractor control or client control).
● Verbal Instructions from not authorized individuals.
● Deficient or late:
○ Site handover
○ Submittal submission (drawing, plans, reports, RFI reply, etc.)
○ payments
● Force majeure conditions.
● Taking over or managing a second party's subcontractor.
● Untimely clarification the client.
● Failure by second parties or client to act fairly ethically.
To reduce claims potentiality, the contract conditions should provide the following for variations,
unknown site conditions and force majeure events to reduce the claim potentialities:
● fair notice provisions.
● reasonable approval/reply periods.
● periodic reporting provisions.
● well defined dispute resolution procedure which can include negotiation, mediation, arbitration
and when all fails, litigation.
Claims are more controlled when there is a proper risk management plan allocating the risk owning
between the parties so that the party has the control over the risk. Claims potentiality are higher when
a client tries to hold the Contractors responsible for risks as much as possible, even for risks on which
the Contractor has little or no control.
An effective practice, in respect to avoid claims is the avoidance of “hardline” positions when dealing
with claims. Hard-line positions, or confrontational attitudes, can escalate a claim situation rather than
resolve it or prevent it. It should be considered when authority levels for the decision making process
are designated early in project life.
Pre-tender meetings between the interested parties where various details, contract requirements and
owner expectations for the project are clarified prior to bid help avoiding claims during design and
construction.
Also, to reduce claim potentiality, the project request of proposal (RFP) must be written in clear and
unambiguous terms, including statements in respect to the quantities the bidders should use as a basis
for their bids.
The attitude of all project team members should aim to eliminate claims by:
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● Identifying potential claims and take steps to avoid or mitigate.

● Having frank discussions between parties to discourage spurious claims.
● Applying contract provisions for relief where justified.
● Creating prompt resolutions for acknowledged changes.
Encountered issues that raised as claims must be well addressed in the following regards:
● identify root causes.
● assess the claimed issue impact in terms of cost and time.
● identify the entitlement of compensation.
● request for required Variation Controls.
For complicated, technical and expensive claims, specialist advice may be required and the services of
Claim Specialists as well as legal advice could be requested and procured.
Claimed quantities are an issue to be addressed in raised claims beside the claimed cost and time.
After client team reviews the submitted claim, disagreements may rise between the parties on one or
more of the following:
● the claim entitlement.
● whether or not the claim constitutes a variation.
● the compensation amount and requested time extension.
It is important that the resolution of claims does not take long because, the longer the resolution process
takes the more expensive and disruptive it is to both parties. Subsequently, both parties should aim to
settle any occurring issues as quick as possible.
If parties do not reach an agreement through negotiation, the claim developer can resort to Alternative
Dispute Resolution (ADR) means such as mediation, arbitration and/or litigation in accordance with the
relevant contract provisions. This escalation can be stated in the project contract to constitute an ultimate
baseline and direction for resolving submitted claims.
Litigation is reached when the contracted parties to fail to achieve an amicable settlement of a dispute.
Construction related litigation is, normally, very complex for court judges to hear and understand. They
usually take a long time to be presented and studied by the court and/or specialized parties assigned
by the court. Usually meanwhile complications take place such as missed constraints, resources
schedule interruption, remobilization due to suspension, cash flow interruption, etc. Therefore, litigation
should be the last resort in ADR steps to resolve a claim. The parties should ensure that it is the only
alternative to resolve.
19.1 PMM-019-CLA-005 Plan Project Claim Management
19.1.1 Objective
The objective of this process is to establish a consistent guide to properly plan and perform the
Claim processes by NWC. Claim processes strongly relevant to Variation Control Process
which widely impact all project process, so the preparation of the Claim Management Plan
section in the Project Management Plan PMP must be with high care and focus.
19.1.2 Policies
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1. Each project must have a separate section for Claim Management in the Project
2. The approved Project Management Plan, including the Claim Management Plan
3. Second Parties must create their own Claim Management Plan sections for the project
as part of their contract mobilization work. These Claim Management Plan Sections
must be approved by NWC during mobilization period.
4. The Claim Management Plans in PMPs of NWC, Design and Construction must be
5. Planning for Claim must be specific and unique to the location, activities and
19.1.3 Flowchart
Figure 19-2 PMM-019-CLA-005 Plan Project Claim Management Flowchart
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19.1.4 Procedures
19.1.4.1 PMM-019-CLA-005-010 Develop the Claim Management Plan Section of the

includes a dedicated section for Claim management.
● Update the Project Claim Section throughout the lifecycle with the
Roles: Responsible:
NWC Project Manager
Cluster Projects GM
Consulted:
Contract Manager
Informed:
Cluster Projects GM
Contract Manager
19.1.4.2 PMM-019-CLA-005-020 Approve the Claim Management Plan Section of
Procedure: ● Review and Approve the Claim Management Plan Section of Project
Management Plan.
satisfactorily.
● Approve the submitted Project Claim Management Plan Section.

Consulted:
NWC Project Manager
Cluster Projects GM
Contract Manager
Informed:
NWC Project Manager
Cluster Projects GM
Contract Manager
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19.1.4.3 PMM-019-CLA-005-030 Ensure Claim Requirements and Technical


includes a dedicated section for Claim management.
own Claim Management Plan and must submit it during the contractual
proposals includes Claim assessment criteria, which addresses:

Consulted:
19.1.4.4 PMM-019-CLA-005-040 Develop Project Claim Management Plan Section in

Procedure: ● Develop Project Claim Management Plan Section in the Project Design
Management Plan.
● Ensure that the Project Claim Management Plan Section in the Project
Design Management Plan is in alignment with the Project Claim
Director about the development of the Project Claim Management Plan
Section.
● Include the Project Claim Management Plan Section in the Project
Management Plan.

NWC Project Manager
Consulted:
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19.1.4.5 PMM-019-CLA-005-050 Ensure Claim Requirements and Technical

Claim Management Plan and must submit it during the contractual
proposals includes Claim assessment criteria, which addresses:

Consulted:
19.1.4.6 PMM-019-CLA-005-060 Develop the Construction Claim Management Plan

Section
Procedure: ● Develop Project Claim Management Plan Section in the Project

● Ensure that the Project Claim Management Plan Section in the Project
Design Management Plan is in alignment with the Project Claim
the development of the Project Claim Management Plan Section.
● Include the Project Claim Management Plan Section in the Project

NWC Project Manager
Consulted:
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19.2 PMM-019-CLA-010 Identify Potential Claims by Reviewing Contract

Documents
19.2.1 Objective
The objective of this process is to have a clear understanding from either contract side point of
view (client and vendor) to document any initial circumstances of a potential claim under the
contract. These claims usually involve extension of time and cost in the case of Contractor
claims.
Good knowledge of the contract and its scope and requirements eases identifying these
circumstances of a potential claim such as activities or interpretation of a contract articles.
19.2.2 Policies
1. NWC team, Design Consultant, Supervision Consultant and Contractor are
responsible for making a thorough review on the contract and gain a proper
knowledge about it to identify, report and discuss potential claims.
2. The Project Scope, as well as the plans and specifications, should be clearly defined
and agreed with the Consultant/Contractor, in advance of the contract start.
3. Any identified issues as potential claims should be kept in separate specific files
containing all the relevant documentation as described above including the Statement
of Claim, all the related correspondence and contract references. This assures that
all the relevant information in respect to a claim is collected and retained in a single
location and is readily accessed.
19.2.3 Flowchart
Figure 19-3 PMM-019-CLA-010 Identify Potential Claims by Reviewing Contract Documents Flowchart
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19.2.4 Procedures
19.2.4.1 PMM-019-CLA-010-010 Identify Potential Claims by Reviewing Contract
Documentation
Procedure: ● During project mobilization period, review all contract documents

including:
○ Contract Terms and Conditions
○ Contract Scope
○ Contract Baseline Schedule and Schedule adjustments
○ Project Risk Register and Allocation
○ Responsibility Matrix
○ Progress Reports and Forecasts
○ Manpower input Reports and Forecasts
○ Cost/Expenditure Reports and Forecasts
○ Project correspondence including Requests for Approvals and
Information
○ Contract Documents
● Encourage internal stakeholders to identify any potential claims.
● Conduct meetings with stakeholders that related to the potential claims
to:
○ plan to resolve/mitigate the circumstance lead to the potential
claims. Project Manager shall manage resolving the resolve/mitigate
the circumstance lead to potential claims on case by case basis.
○ outline how to respond to claim if raised.
● Monitor and document all identified potential claims.
NWC Project Manager
Roles: Responsible:
Consulted:
19.3 PMM-019-CLA-020 Avoid Claims

19.3.1 Objective
The objective of this process is to minimize the possibilities of identified potential claims. Claim
avoidance is attained by keeping the causes that create claims from arising by performing
actions during project life. In general, proper project management with efficient communication
between the project parties contribute considerably to reducing the claims.
00_PT03_MN_002.02 737 of 751 05/01/2022

19.3.2 Policies
1. NWC team, Design Consultant, Supervision Consultant and Contractor are
responsible for directing and managing the project in manner of avoiding claims
through collaborative working between the project parties and fair and accurate
application of effective project planning, communication, control and variation
management.
2. All project parties are recommended to avoid “hardline” positions when dealing with
claims. However, authority levels for the decision making process should be
designated early in project life.
3. Constructability reviews to be performed as they much help identify problems with the
construction methods subsequently minimize the possibility of site problems during
construction which is a common source of claims.
4. Pre-tender meetings between the interested parties where various details, contract
requirements and owner expectations for the project are clarified prior to the
finalization of the contract help avoiding claims during construction. The request of
proposal (RFP) should be written in clear and unambiguous terms, including
statements in respect to the quantities the bidders should use as a basis for their bids.
5. All members of the project team should endeavor to:
● Identify potential claims and take steps to avoid or mitigate.
● Have frank discussions between parties to discourage spurious claims.
● Apply contract provisions for relief where justified.
● Create prompt resolutions for acknowledged changes.
6. Project manager is responsible for raising the awareness about the typical causes of
Claims to help to avoid potential claims. The early identification of potential claims
during project life the better probability to avoid the claim. Review the examples in the
introduction of this section.
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19.3.3 Flowchart
Figure 19-4 PMM-019-CLA-020 Avoid Claims Flowchart
19.3.4 Procedures
19.3.4.1 PMM-019-CLA-020-003 Raise the Awareness about the Typical Claim Causes
Procedure: ● During all project life, the project manager shall raise the awareness of
the project team members about the typical causes of Claims to help to
early identify them to avoid or manage. It can be via:
○ periodic objectives cascading.
○ discussions in risk workshops.
○ discussions in lessons learned workshops.
○ progress meetings.
● See the key typical claim causes in the introduction to this section.
NWC Project Manager
Roles: Responsible:

NWC Projects Team
Informed:
Design Consultant
Contractor
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19.3.4.2 PMM-019-CLA-020-006 Identify and Take Actions to Avoid or Manage

Potential Claims
Procedure: ● After identifying the potential claims by reviewing contract documents in

process (PMM-019-CLA-010 Identify Potential Claims by Reviewing
Contract Documentation), actions to avoid or manage potential claims
shall be identified, scheduled, assigned to owners, performed and
monitored.
● Every action shall fall under one or more of PMM sections and shall be
managed as per the section processes.
NWC Project Manager
Roles: Responsible:
19.3.4.3 PMM-019-CLA-020-010 Review Constructability
Procedure: ● During each design reviews:

○ Go through the (PMF-019-CLA-002 Constructability Checklist) and
ensure that all related issues have been considered and
implemented in design.
○ Review Project Risk register to consider relevant Risks.
● During the project life cycle:
○ Receive, evaluate and respond to constructability suggestions
submitted by project team.
○ Add the approved constructability suggestions to the agenda of next
design review workshop and to the project lesson learned register.
● Review Method Statements considering constructability. Arrange
Method Statements review conferences when necessary with
Consultant/Contractor and:
○ Confirm compatibility of Design and Method Statements.
○ Review Risk Assessment attached to Method Statement.
○ Review and confirm the Responsibilities.
NWC Project Manager
Roles: Responsible:
Consulted: Cluster Risk Section Head
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Informed: Continuous Improvement Lead
19.3.4.4 PMM-019-CLA-020-020 Timely Respond to Approval Requests
Procedure: ● Respond to received document approval requests in accordance with the

contract provisions.
● Provide quick and clear instructions for any required adjustments on the
documents submitted for approval.
● Provide the Approval requested as quick as possible within the contract
provisions.
Roles: Responsible: NWC Projects Team
19.3.4.5 PMM-019-CLA-020-030 Timely Respond to Requests for Information
Procedure: ● Respond to received Requests for Information in accordance with the

● Provide quick and clear clarification requests in respect to any Requests
for Information.
● Provide the Requested Information as quick as possible within the
Roles: Responsible: NWC Projects Team
19.4 PMM-019-CLA-030 Assess and Quantify Claim

19.4.1 Objective
The objective of this process is to describe the processes used to evaluate a claim in terms of
both cost and time to a project.
19.4.2 Policies
1. Claim events must be formally recorded using the approved forms and must be
submitted to the other side.
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2. The claim should contain written description of all the works, or conditions, believed
to be outside the contract, with details as to where they occurred, when they took
place and why they are not covered by the contract.
3. Reference should be made to the sections and/or clauses (articles) of the contract
that support the claim contents. It is essential that reference is made on every activity
affected by the claimed works as well.
4. The claim should address the effect on the project schedule and any additional time
that might be required to complete the contract works.
5. All documentation of costs and time that related to a claim should be well recorded
and readily available. This documentation should be proper and thorough. Such
documentation may include photographs and videos of the works involved, as well
as, relevant contract sections and drawings, statements of professionals and
personnel involved, relevant correspondence, instructions, approved details or shop-
drawings and as build schedules. A cost accounting for the claimed works or
conditions is also required.
6. Submitted claims should include the following:
● Description of the work performed, delayed or impacted.
● Cost and schedule quantification.
● Contractual basis for entitlement (entitlement justification).
● Cost and schedule impact on project works.
● Requested relief in term of cost and time.
7. All quantities in claims should be measured in the BoQ measuring units.
8. A Claim cost Estimate should cover all direct and indirect claimed work aspects such
as manpower, equipment and material involved in the claimed works. This facilitate
of estimating and reviewing the claim cost.
9. Entitlement identification should be performed and completed independently from the
claim quantification.
10. Computer applications of cost and schedule can be used to partially or completely
prepare or analyze a claim.
11. The submitted full claim document becomes the working documented which the
defending party will use as the basis to formulate its defence, or its negotiation
strategy or acquiesce to the claimed costs and time.
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19.4.3 Flowchart
Figure 19-5 PMM-019-CLA-030 Assess and Quantify Claim Flowchart
19.4.4 Procedures
19.4.4.1 PMM-019-CLA-030-010 Receive Claim
Procedure: ● NWC Project Manager shall:

○ receive the submitted claim documentation and acknowledge
receipt.
○ Update the (PMF-007-INT-010 Project Variation Register)
accordingly.
○ transmit the documentation to Cluster Contracts Administration
Section Head and Supervision Consultant.

Consulted:
Informed:
Guidelines: ● For analysis of claimed damages shall:
○ The second party shall provide a proof of expenditures and detailed
calculations of damages (prove the expenditures and damage
amounts).
○ The NWC team and Supervision Consultant shall conduct an audit.
○ If possible, the second party shall provide actual cost information
from his records as proof of damages.
○ The second party shall deduct any cost paid by NWC for repairing
or completing deficient work.
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19.4.4.2 PMM-019-CLA-030-020 Identify Claim Entitlement
Procedure: ● Review claim documentation and claim scope including the scope
quantities to next confirm the contractual entitlement:
○ confirm the claimed scope is not included the project scope.
○ confirm the claimed scope is not covered by project insurance if any.
○ confirm the contract terms and conditions that the claim is based on.
○ confirm that any issues, circumstances and delay reasons are out of
the contract provisions and out of Contractor control.
○ request further supporting information and documentation as
necessary.
○ decide on the contractual entitlement.
● If there is:
○ a contractual entitlement, the claim documentation shall be further
processed.
○ no contractual entitlement, notify the claim developer by a claim
rejection letter indicating the rejection justification.
Roles: Responsible:
Cluster Technical Services Director (on design projects)
Supervision Consultant (on construction projects)
NWC Project Manager
Consulted: Cluster Scheduling Section Head

Contracts Manager
Informed:
Cluster Technical Services Director (on construction
projects)
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Guidelines: ● The schedule and money involved should not be a factor in determining
entitlement.
● Essential elements for NWC team to achieve a thorough, balanced
conclusion:
○ Reading and studying all pertinent parts of the contract documents.
○ Becoming familiar with the language in the contract and any other
related documents, such as schedules, manuals, and supplements
that are made part of the contract.
○ Identifying the proper parties.
○ Determining the facts, using information from all relevant sources. A
full knowledge of the true facts is essential to reach a correct
conclusion.
○ Carefully examining the material presented by the second party as
proof of causation to spot any inaccuracies or ambiguities that may
discredit or negate all or part of the second party's claim. Requiring
that the second party prove a cause and effect relationship.
○ Asses technical validity and entitlement
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19.4.4.3 PMM-019-CLA-030-030 Quantify Claim and Issue a Claim Report
Procedure: ● Review claim documentation and project progress reports to identify and
confirm the:
○ Claimed quantities of work.
○ Claimed extension of time.
○ Resources quantity.
○ Overhead quantity.
○ Any other aspects that will require a time and cost.
● NWC Project Manager shall forward the claim documents to one of the
following to develop a claim report indicating any claim impact. NWC
Project Manager shall incorporate any provided clarification replies or
additional information from claim developer (Contractor/consultant).
○ in design projects, to NWC Project Manager shall forward to the
followings to develop specialty reports for design, schedule, scope,
cost/budget and risk as applicable to the claim subject:
- Cluster Technical Services Director (for scope aspects)
- Cluster Value Engineering Specialist (for design aspects)
- Cluster Scheduling Section Head (for schedule aspects)
- Cluster Risk Section Head (for risk aspects)
- Cluster Cost Control Section Head (for cost aspects)
- Cluster Document Control Section Head (for administration
aspects)
Project Manager shall compile the specialty reports into one claim
report.
○ in construction projects, NWC Project Manager shall forward to the
Supervision Consultant. The cluster departments in the above step
shall be consulted as required.
● Previous step shall include calculating the associated indirect cost
including overhead cost.
the requester shall request the NWC Project Manager to collect and
transmit it.
Supervision Consultant (on construction projects)
Roles: Responsible:
Cluster Contracts Administration Section Head (on design
projects)
Cluster Cost Control Section Head (on design projects)
Cluster Scheduling Section Head (on design projects)
Cluster Technical Services Director (on design projects)
Cluster Risk Section Head (on design projects)
NWC Project Manager
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Cluster Projects GM
Informed:
Contracts Manager
Guidelines: ● Assessment and analysis of the claimed costs should cover:
○ Labor, including fringe benefits, direct and indirect categories
○ Material, including taxes and transportation
○ Equipment, tools and supplies
○ Overhead and general administration expense
○ Bond and insurance costs
○ Profit
○ Actual time durations (planned and actual)
○ Existing unit rates or comparable Unit Rates to those claimed to
have been impacted
● Assessment and analysis of the claimed schedule should cover:
○ Impact on the critical activities in the approved schedule
○ The impact of the second party concurrent delays in both critical and
non-critical activities to reasonably determine the respective party’s
concurrent liabilities
○ Impact in working efficiencies or “loss of productivity” on the
schedule durations
○ Assessment of any second party concurrency in delays to other
works that mitigate the liability of NWC for the Delay.
○ Validation against actual as-built schedule records to capture the
actual impact on works in progress.
● The Schedule assessment and analysis shall summarize the following:
○ The impact to the critical path and completion date, or milestone
date as applicable, as determined by the delay impact analysis.
○ The assessment of any concurrency in the other works to which the
second party is liable
○ The net impact to the schedule, considering item a and b above that
corresponds either a recommended Extension of Time to the
milestone or completion date (as defined in the Agreement)
represented in Days or a justification as to why an Extension of Time
is not granted.
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19.4.4.4 PMM-019-CLA-030-050 Claim Documentation
Procedure: ● File all the supporting Claim Documentation including:

○ Contract condition sections/clauses the Claim is based on
○ Manpower timesheets
○ Plant timesheets
○ Material quantities used and their delivery notes and invoices
○ Labor and Plant Rates evidence (payslips, invoices and internal
charge rate calculations)
○ Relevant Progress Reports
○ Baseline, actual schedules and comparisons
○ Cost and Schedule calculations
○ Any other cost and Schedule calculation supporting evidence,
document or calculation method (e.g. measured mile, productivity
loss etc.)
○ Specialty reports
○ Claim report
● Process the claim in (PMM-007-INT-060 Variation Control) starting from
(PMM-007-INT-060-035 Initiate Variation Request).

NWC Project Manager
Consulted:
NWC Project Manager
Informed:
Contracts Manager
The table below identifies the KPIs of Project Claim Management. The NWC Project Manager is
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Table 19-1 Project Claim Management KPIs

Detail Measurement
Identify Potential
that its potential claims
Claims by
are not identified by
1 Reviewing Monthly 0 4 >4
reviewing the project
Contract
contract documents
Documents
project mobilization
period.
The year-to-date
average of to assess
Actual time to
and quantify a claim by
2 assess and Monthly 7 14 > 14
NWC team (and
quantify a claim
supervision consultant if
assigned) in the project.
Projects completed that are:
3 with unresolved - closed with open Monthly 0 2 >2
Claims claims.
- can not be closed due
to open claims.
19.6 Attachments
CLA Project Claim Management).
Table 19-2 Project Claim Management forms, templates and guidelines
Document No. Title
PMF-019-CLA-002 Constructability Checklist
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References
References
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References
References:
● PMBOK R6 - (PMI)
● White Book - 2019 (Mashroat)
● Entity Five-Year Projects Portfolio Planning - 2019 (Mashroat)
● Stage Gates Process - 2018 (Mashroat)
● Cost Estimate Classification System - 2019 (AACE)
● Value Methodology Standard Reference - 2020 (SAVE International)
● ISO 9001 Quality Management Systems - Requirements (ISO)
● Project Management Manual PMM - 2012 (NWC)
● Capital Projects Policy - 2020 (NWC)
● Governance Document - 2020 (NWC)
● Projects Processes and Procedures Manual - 2014 (NWC)
● Government Tender and Procurement System and Regulations - 2020 (MOF)
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6.3 PMM-006-GOV-040 End User ........................................................................................................166

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9.1 What is Value? ................................................................................................................................356

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13.1 PMM-013-HUM-010 Plan Project Human Resource Management .................................................494

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16.1 PMM-016-PRO-010 Plan Purchases and Acquisitions at Portfolio Level ........................................615

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Figure 7-9 Managing the Design ......................................................................................................................... 242

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Figure 16-6 PMM-016-PRO-040 Select a Bidder Flowchart ................................................................................ 635

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Affected Parties YES

Business Excellence YES YES YES

Capital Projects &

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II. Structure of the Manual

Table II-1 Project Management Manual Sections

3 PLC Project Lifecycle and Stage Gate Process

4 FYP Five-Year Projects Portfolio Plan

5 TEA Project Team Management

6 GOV Project Governance Management

7 INT Project Integration Management

8 SCO Project Scope Management

9 VEN Value Engineering

10 SCH Project Schedule Management

11 COS Project Cost Management

12 QUA Project Quality Management

13 HUM Project Human Resource Management

14 COM Project Communications Management

15 RIS Project Risk Management

16 PRO Project Procurement Management

17 HSE Project Health, Safety & Environmental Management

18 FIN Project Financial Management

19 CLA Project Claim Management

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Issue Issue Prepared by Reviewed by Owned by Endorsed by Approved by

● The sections abbreviation been changed from “GEN” to “IND”.

This section is developed as an update to “Introduction” section in first version the

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1.2.3 PMM-002-PLC Project Lifecycle

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Table 1-1 Flowchart Shapes Legend

Ser Item Shape Description